Digital asset banking group Sygnum has given crypto lender Ledn a Bitcoin-backed loan of $50 million, described as the first such loan of its kind.

The idea, according to a Tuesday announcement, is that Toronto-based Ledn—which offers interest-bearing savings accounts and Bitcoin-backed loans—will use the cash to grow its retail lending operations. The firms say it's the first time a regulated bank has issued a loan backed by Bitcoin.

"With the first Bitcoin-backed syndicated loan from a fully regulated bank, Sygnum is excited to support Ledn's future growth and kick-start a new market for institutional lenders and borrowers as the crypto ecosystem matures," Sygnum's head of credit and lending, Benedikt Koedel, said in Tuesday's announcement.

Big investors continue to eye up Bitcoin and other crypto assets. Image: Shutterstock

Crypto Firm Ledn Raises $70M for Bitcoin-Backed Mortgages

Ledn, a Toronto-based crypto lending firm, has announced a $70 million raise in a Series B funding round led by Dan Tapiero's 10T Holdings. The fresh financing brings Ledn’s market valuation to $540 million. Golden Tree Asset Management, Raptor Group and FJ Labs are among the firm’s new backers, joining the existing investors such as White Star Capital, Kingsway Capital, Coinbase Ventures, Alan Howard, Parafi Capital, and Susquehanna Private Equity Investments. Ledn said it would use the fresh c...

NewsBusiness
3 min read
Andrew Asmakov

Ledn CEO John Glover added that the loan was a "significant step forward in integrating crypto assets into mainstream financial markets."

The announcement said that with the loan, Ledn clients would have more flexibility to access capital while using their Bitcoin as collateral.

Bitcoin
BTC
+3.93%$107,596.54
24H7D1M1YMAX
Created with Highcharts 10.3.3May 14May 16May 18May 20May 22May 24May 26May 28May 30Jun 1Jun 3Jun 5Jun 7Jun 9Jun 11$100000$102500$105000$107500$110000$112500
Price data by
BTC price

Founded in 2017, Sygnum says it is the world's first digital asset bank and manages over $4.5 billion in assets.

It has a Swiss banking license and a capital markets license, which allows it to operate and lend in Singapore. It is also regulated in Abu Dhabi and Luxembourg.

Ledn said at the start of this month that it had processed $1.16 billion in digital asset loans—mostly to institutions—in the first half of this year.

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.