TechFlow news — Digital asset banking group Sygnum has provided Ledn, a cryptocurrency lending firm, with a $50 million Bitcoin-backed loan, described as a first-of-its-kind in the industry.
According to Tuesday’s announcement, Toronto-based Ledn will use the funds to expand its retail lending operations. Ledn offers interest-bearing savings accounts and Bitcoin-backed loans. Sygnum and Ledn stated this marks the first time a regulated bank has issued a Bitcoin-collateralized loan.
The announcement said the loan will enable Ledn's customers to more flexibly access capital using Bitcoin as collateral.
Founded in 2017, Sygnum calls itself the world’s first digital asset bank, managing over $4.5 billion in assets. The bank holds a Swiss banking license and capital markets licenses, enabling it to conduct business and lending activities in Singapore. It is also regulated in Abu Dhabi and Luxembourg.
