Sygnum, a global digital asset banking group with ~$4.5 billion in client assets, has issued the industry-first syndicated loan backed by Bitcoin (BTC) to premier crypto lender Ledn, which will be used to fund the growth of Ledn’s retail lending operations.
Syndicated among Sygnum’s institutional clients, “the $50 million loan will allow Ledn to bring additional liquidity to both the crypto sector and the existing $1.38 trillion syndicated loan market.”
Ledn will use the loan to “fund its retail book growth, offering its clients even more flexible opportunities to access capital while using their BTC holdings as collateral held in qualified custody to ensure the highest levels of security and regulatory compliance.”
John Glover, Chief Investment Officer at Ledn, said:
“Partnering with Sygnum to secure the first Bitcoin-backed syndicated loan facility is a landmark achievement for Ledn. This collaboration not only underscores our commitment to pioneering innovative financial solutions but also marks a significant step forward in integrating crypto assets into mainstream financial markets. We are excited to work with Sygnum to leverage this new source of liquidity to further drive our growth and continue offering secure and transparent financial products to our clients.”
Ledn and Sygnum’s collaboration reflects “the rapid maturation of the digital asset industry, marking a shift toward fully regulated institutional-grade services where Bitcoin is increasingly acknowledged as a legitimate asset class.”
This transaction aims to establish “a precedent for traditional financial participants, fostering their confidence in the Bitcoin-collateralized lending market and unlocking substantial liquidity for the sector.”
Benedikt Koedel, Head of Credit & Lending at Sygnum said:
“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.”
Today, Ledn is already actively working with top traditional financial institutions, and its collaboration with Sygnum “represents a significant milestone for the broader industry, demonstrating a commitment to diversification in lending counterparties.”
Ledn and Sygnum already have a strong partnership which “began with a bilateral lending relationship, and both companies look forward to expanding the scope of their collaboration in the future.”
Adam Reeds, CEO and Co-Founder of Ledn:
“We’re proud to be working with Sygnum, a fully regulated Swiss bank, to set a new benchmark for transparency, counterparty quality, robust risk management practices, and institutional-grade lending standards. 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.”
Sygnum is a global digital asset banking group, “founded on Swiss and Singapore heritage.”
They empower professional and “institutional investors, banks, corporates and DLT foundations to invest in digital assets with complete trust.”
Their team enables this through their “institutional-grade security, expert personal service and portfolio of regulated digital asset banking, asset management, tokenization and B2B services.”
In Switzerland, Sygnum holds “a banking license and has CMS and Major Payment Institution Licences in Singapore.”
The group is also regulated in the “established global financial hubs of Abu Dhabi and Luxembourg.”
