Ledn secures $50M Bitcoin-backed loan from Sygnum Bank

Ledn, a cryptocurrency lending platform, has received a $50 million syndicated loan from the Swiss banking group Sygnum.

This significant financial move will bolster Ledn’s retail lending operations, offering enhanced security for clients' Bitcoin (CRYPTO:BTC) collateral and providing bank-grade custody for assets.

The loan, syndicated by Sygnum’s institutional clients, marks a pivotal moment in integrating crypto assets into mainstream financial markets.

Syndicated loans are typically large loans provided by a group of financiers to a single borrower.

In this case, the $50 million facility will enable Ledn to offer additional liquidity to the growing syndicated loan market, which is valued at approximately $1.38 trillion, further embedding cryptocurrency into the financial sector.

John Glover, chief investment officer at Ledn, highlighted the importance of this collaboration, describing it as a major step forward in developing innovative financial solutions.

He emphasised that this partnership with Sygnum represents a substantial advancement in the acceptance and integration of crypto assets within traditional financial markets.

Sygnum Bank, focused on expanding its presence in the European Union and Asia, continues to strengthen its position in the crypto space.

The bank announced plans to further expand into the European market in the first quarter of 2025 under the new Markets in Crypto-Assets Regulation (MiCA).

This regulation aims to create a transparent and secure environment for investors within the Eurozone's crypto industry.

The first half of 2024 was particularly successful for Sygnum, with the bank reporting a twofold increase in crypto Spot trading volumes and a 500% rise in crypto derivatives trading compared to the previous year.

Additionally, Sygnum experienced a 360% increase in loan volumes and conducted over 1,000 daily transactions.

Benedikt Koedel, head of credit and lending at Sygnum, expressed enthusiasm for supporting Ledn’s growth and creating new opportunities for institutional lenders and borrowers as the crypto ecosystem continues to mature.

This loan is notably the first Bitcoin-backed syndicated loan provided by a fully regulated bank, marking a significant milestone in the evolving relationship between traditional finance and the cryptocurrency sector.

At press time, Bitcoin was priced at $59,722.86.