Ledn, a leading digital lending platform, has officially secured a $50 million Bitcoin-backed syndicated loan from Sygnum, a Swiss digital asset banking group with approximately $4.5 billion in client assets, according to a press release sent to Bitcoin Magazine.

Members and @sygnumofficial History just made! 🎉

Sygnum Bank has provided the industry’s first $50 million (USD) syndicated BTC-backed loan to Ledn

A giant leap forward for the industry and our customers! 🚀 photo.twitter.com/z8dVRD2ERt

— Ledn (@hodlwithLedn) August 20, 2024

The $50 million loan, syndicated among Sygnum’s institutional clients, will fuel Ledn’s expansion into retail lending, and provide clients with greater opportunities to access capital using their Bitcoin holdings as collateral. The collateral will be held in qualified custody, with the aim of ensuring the highest levels of security and regulatory compliance.

“With the first Bitcoin-backed syndicated loan from a fully regulated bank, Sygnum is excited to support Ledn’s future growth and spark a new market for institutional lenders and borrowers as the crypto ecosystem matures,” said Benedikt Koedel, Head of Credit and Lending at Sygnum.

This loan between Ledn and Sygnum reflects the continued maturation of the Bitcoin industry and the shift towards fully regulated, institutional-grade financial services. The transaction is intended to build confidence among traditional financial participants when it comes to Bitcoin-collateralized lending, potentially unlocking substantial liquidity for the sector around the existing $1.38 trillion syndicated loan market, the press release said.

“We are proud to partner with Sygnum, a fully regulated Swiss bank, to set a new benchmark for transparency, counterparty quality, robust risk management practices and institutional 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.”