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 capital to support growth, specifically plans to build what it claims to be the world’s first Bitcoin-backed mortgage product.

"Most people that hold extensive wealth in Bitcoin still can't utilize their assets to qualify for a mortgage at a bank," said Adam Reeds, Ledn co-founder and CEO. "Our clients want to diversify their portfolio in order to protect their wealth and then utilize that wealth for instances such as purchasing a home, but one should not come at the expense of the other.”

Bitcoin, the market’s largest cryptocurrency, is currently trading hands around $47,660, or 30% down from its all-time high of $69,044, recorded on November 10.

Leaving the mainstream path

According to Reeds, the new Bitcoin-based mortgage offering will "provide access to key financial products for those who choose to invest outside the mainstream of legacy banks."

Ledn said the product is slated to become available to clients in the U.S. and Canada early next year. The company is targeting over $100 million in Bitcoin-backed mortgage originations by the end of Q1 2022.

"Ledn's business model is a true win-win for investors and borrowers alike as it gives investors the ability to earn strong returns on their digital asset investments, while providing great interest rates to borrowers," added Dan Tapiero, who is now joining Ledn's board of directors.

In May, Ledn raised $30 million in a Series A funding round led by London-based investment firm Kingsway Capital.

According to the company, it’s operating in 127 countries with 44% of its loan clients based out of Latin America, where it hopes to expand with help of the latest fundraise.

Ledn claims to have more than $1.7 billion in clients' assets—an impressive 4,000% increase from Q3 2020. It’ll be looking to boost this figure with its Bitcoin mortgages too.