Cryptocurrency lending platform Ledn announced on August 20 that it has secured a $50 million Bitcoin-backed syndicated loan from Swiss global cryptocurrency banking group Sygnum. CryptoSlate.
This industry-first loan strengthens Ledn’s retail lending operations, providing clients with flexible access to capital. Bitcoin assets serve as secure collateral, ensuring regulatory compliance.
Ledn’s retail lending segment in particular has seen notable growth this year. In the second quarter, the company processed $85 million in retail loans, up from $65.5 million in the first quarter. Despite this growth, institutional clients still dominate the business.
Adam Reeds, Ledn CEO and co-founder, said:
“This marks the beginning of a new era of transparency and professionalism in digital asset financial services and aligns perfectly with our long-standing commitment to client asset security and regulatory compliance.”
Strengthening Bitcoin Position
Red believes this loan will further solidify Bitcoin’s legitimacy as an asset class.
The company noted that the move sets a precedent that increases confidence in the Bitcoin collateralized lending market, while also providing traditional financial players with access to liquidity in the sector.
Ledn’s Chief Investment Officer John Glover said the loan is a significant step toward integrating cryptocurrencies into mainstream finance. He said Ledn will use this liquidity to fuel growth and provide safe and transparent financial products.
Benedikt Koedel, Head of Credit and Lending at Sygnum, said he was excited to support Ledn’s future growth. He highlighted that this pioneering Bitcoin-backed syndicated loan, issued by a fully regulated bank, could open up a new market for institutional lenders and borrowers as the crypto ecosystem evolves.
Ledn also emphasized that this partnership with Sygnum is in line with its history of working with leading traditional financial institutions. The company also hinted that it plans to expand this relationship through future ventures.