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.
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.
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.
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