The Swiss banking group Sygnum has provided a $50 million syndicated loan to the cryptocurrency lending platform Ledn.
The loan will enhance its retail lending operations by providing bank-grade custody for assets and security for clients’ Bitcoin collateral, according to an announcement from Ledn.
Sygnum’s institutional clients syndicate the $50 million loan. A syndicated loan is a substantial loan provided to a single borrower by a group of financiers, known as a syndicate.
The loan will enable Ledn to provide supplementary liquidity to the syndicated loan market, which is estimated to be worth $1.38 trillion, and the crypto sector.
“Achieving the first Bitcoin-backed syndicated loan facility in partnership with Sygnum is a significant milestone for Ledn,” stated John Glover, chief investment officer at Ledn.
Glover stated, “This collaboration demonstrates our dedication to developing innovative financial solutions and represents a substantial advancement in integrating crypto assets into mainstream financial markets.”
Sygnum Bank announced in July that it is contemplating further expansion into the European market in Q1 2025 under the forthcoming Markets in Crypto-Assets Regulation (MiCA).
The groundbreaking framework aims to establish a transparent and secure environment for investors in the crypto industry within the Eurozone.
Sygnum Bank’s first half of 2024 was profitable due to its robust business performance. Compared to the same period in 2023, the firm experienced a twofold increase in crypto spot trading volumes and a 500% increase in crypto derivatives trading.
Sygnum demonstrated a more than 360% increase in loan volumes and more than 1000 daily transactions.
In a press release, Benedikt Koedel, head of credit and lending at Sygnum, expressed his enthusiasm for the opportunity to support Ledn’s future growth and establish a new market for institutional lenders and borrowers as the crypto ecosystem matures.
This marks the first Bitcoin-backed syndicated loan from a fully regulated bank.
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