The loan will be used to further expand Ledn’s lending operations with bank-grade custody, security, and transparency for clients’ Bitcoin collateral.
Global digital asset banking group Sygnum has issued the industry-first syndicated loan backed by Bitcoin (BTC) to premier crypto lender Ledn, which will be used to fund the growth of Ledn’s retail lending operations.
Syndicated among Sygnum’s 2,000 institutional clients, the new $50 million loan will allow Ledn to bring additional liquidity to both the crypto sector and the existing $1.38 trillion syndicated loan market.
“Partnering with Sygnum to secure the first Bitcoin-backed syndicated loan facility is a landmark achievement for Ledn. This collaboration not only underscores our commitment to pioneering innovative financial solutions but also marks a significant step forward in integrating crypto assets into mainstream financial markets,” noted John Glover, Chief Investment Officer at Ledn. “We are excited to work with Sygnum to leverage this new source of liquidity to further drive our growth and continue offering secure and transparent financial products to our clients.”
Ledn will use the loan to fund its retail book growth, offering its clients even more flexible opportunities to access capital while using their BTC holdings as collateral held in qualified custody to ensure the highest levels of security and regulatory compliance. Furthermore, this collateral will be pledged back to Sygnum to provide bank-level security for the assets, resulting in enhanced security and risk management.
Ledn and Sygnum’s collaboration reflects the rapid maturation of the digital asset industry, marking a shift toward fully regulated institutional-grade services where Bitcoin is increasingly acknowledged as a full-fledged asset class. As such, the syndicated loan is expected to be the first of many as both companies aim to expand their offerings and meet the increasing demand for digital asset financial services.
“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,” said Benedikt Koedel, Head of Credit and Lending at Sygnum.
Ultimately, the syndicated loan offering brings bank-level security to Ledn's customers while showcasing the company's commitment to transparency and working with top-tier financial institutions.
Today, Ledn is already actively working with top traditional financial institutions, including other banks, and its collaboration with Sygnum represents a significant milestone for the broader industry, demonstrating a commitment to diversification in lending counterparties. Ledn and Sygnum already have a strong partnership, which began with a bilateral lending relationship, and both companies look forward to expanding the scope of their collaboration in the future.
“We’re proud to be working with Sygnum, a fully regulated Swiss bank, to set a new benchmark for transparency, counterparty quality, robust risk management practices, and institutional-grade lending standards,” said Adam Reeds, CEO and Co-Founder of Ledn. “We believe this marks the beginning of a new era of transparency and professionalism in digital asset financial services, and it aligns perfectly with our long-standing commitment to client asset security and regulatory compliance.”
