Digital lending platform Ledn has announced that it has successfully secured a €46 million syndicated loan backed by Bitcoin (BTC).
Collaboration with Sygnum
This Bitcoin-backed loan has been syndicated by Sygnum, a global digital asset banking group that currently manages €4.1 billion in client assets. This loan is in turn another industry first and will serve to support the growth of Ledn’s retail lending business.
Adam Reeds, CEO and co-founder of Ledn, provided insight into the company’s vision for the future. He stated: “We see this pilot transaction as the first of many syndicated loans as digital assets inevitably find their way into mainstream financial markets.”
Providing more flexibility
The partnership with Sygnum’s institutional clients will enable Ledn to offer its clients greater flexibility in accessing capital. John Glover, chief investment officer at Ledn, emphasized in the press release that the partnership with Sygnum is an important step for “the integration of crypto assets into mainstream financial markets.”
Glover continued: “Securing the first Bitcoin-backed syndicated loan in partnership with Sygnum is a milestone for Ledn.” Reeds added that the loan is “very similar” to how Ledn supports its retail clients in servicing loans, which requires collateral to be topped up at certain LTV thresholds.
Major shift is marked
This partnership marks a significant shift towards “fully regulated, institutional-grade services” as Bitcoin becomes increasingly recognized as an asset class.
According to the press release, the €46 million loan is intended to “set a precedent for traditional financial players.”
Impact on institutional services
Benedikt Koedel, Head of Credit and Lending at Sygnum, highlighted the impact on institutional services: “With the first Bitcoin-backed syndicated loan from a fully regulated bank, Sygnum is excited to support Ledn’s future growth and create a new market for institutional lenders and borrowers as the crypto ecosystem matures.”
Katalin Tischhauser, head of investment research at Sygnum Bank, provided more detail on the benefits of exchange-traded funds (ETFs) for traditional institutional investors, predicting that BTC ETF inflows would be between €28 billion and €46 billion in the first year, with spot Ethereum products to follow.
Tischhauser explained that Ethereum derives its value primarily from revenue and cash flows, making it more relatable to traditional institutional investors than the concept of digital gold.
Source: https://newsbit.nl/ledn-verwerft-gesyndiceerde-bitcoin-lening-van-e46-miljoen/
