Sygnum, a European digital asset bank, says it has closed a $50 million syndicated loan secured by Bitcoin. The transaction was for Ledn, and a portion of the proceeds is expected to aid the firm’s tokenization services. Sygnum states that the loan is indicative of growing demand for yield-bearing, crypto-collateralized debt.
Ledn is a platform for Bitcoin-backed loans globally, providing a path to unlock liquidity without selling Bitcoin. Founded in 2018, Ledn reports over $10 billion in loans.
The loan was said to be a 2x oversubscribed.
Benedikt Koedel, Head Credit & Lending at Sygnum, said the loan showcases how the bank can generate value.
Sygnum states that traditional and DeFi yields are flattening, and institutional and qualified investors are increasingly looking for stable, inflation-resistant income products. The Ledn facility provides access to yield secured by overcollateralised BTC-backed loans, with collateral managed by Sygnum.
In August 2024, Sygnum issued its first syndicated loan backed by BTC, which was used to fund the growth of Ledn’s retail lending operations. The bank reports that it continues to see strong demand from Bitcoin holders who want to monetise the value of their BTC without selling it.