Sygnum Issues Industry-first $50M Bitcoin-backed Syndicated Loan to Ledn

The loan will be used to further expand Ledn’s lending operations with bank-grade custody, security, and transparency for its clients.

Zurich — August 20, 2024 — 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.

“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,” noted John Glover, Chief Investment Officer at Ledn. “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.

“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,” said Benedikt Koedel, Head of Credit & Lending at Sygnum.

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.

“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,” 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.”

About Sygnum

Sygnum is a global digital asset banking group, founded on Swiss and Singapore heritage. We empower professional and institutional investors, banks, corporates and DLT foundations to invest in digital assets with complete trust. Our team enables this through our institutional-grade security, expert personal service and portfolio of regulated digital asset banking, asset management, tokenisation and B2B services.

In Switzerland, Sygnum holds a banking licence 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.

We believe that the future has heritage. Our crypto-native team of banking, investment and digital asset technology professionals are building a trusted gateway between the traditional and digital asset economies that we call Future Finance. To learn more about how Sygnum’s mission and values are shaping this digital asset ecosystem, please visit sygnum.com and follow us on LinkedIn and X.

Media contact
Dominic Castley, CMO 
[email protected]

Sygnum Bank AG,
Uetlibergstrasse 134a,
8045 Zurich, Switzerland

About Ledn

Ledn.io is a financial services company specializing in crypto-backed loans and other related financial services. The company’s mission is to provide its customers with access to financial products that are secure, transparent, and easy to use. Ledn has originated over $6B in crypto-backed loans since its inception in 2018. In addition to its industry leading loans, Ledn offers growth accounts and other services that allow its clients to maximize their digital wealth. The company is headquartered in the Cayman Islands. For more information, please visit https://ledn.io/

Disclaimer: The information in this publication pertaining to Sygnum Bank AG (“Sygnum”) is for general information purposes only, as per date of publication, and should not be considered exhaustive. This publication does not consider the financial situation of any natural or legal person, nor does it provide any tax, legal or investment advice. This publication does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum to purchase or sell any assets. No elements of precontractual or contractual relationship are intended. While the information is believed to be from accurate and reliable sources, Sygnum makes no representation or warranties, expressed or implied, as to the accuracy of the information. Sygnum expressly disclaims any and all liability that may be based on such information, omissions, or errors thereof. Any statements contained in this publication attributed to a third party represent Sygnum‘s interpretation of the data, information and/or opinions provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. Sygnum reserves the right to amend or replace the information, in part or entirely, at any time, and without any obligation to notify the recipient of such amendment / replacement or to provide the recipient with access to the information. Simultaneously, there is no obligation of Sygnum to inform recipients of information, if before provided information later becomes outdated, inaccurate or obsolete, unless otherwise provided by applicable law. The information provided is not intended for use by or distributed to any individual or legal entity in any jurisdiction or country where such distribution, publication or use would be contrary to the law or regulatory provisions or in which Sygnum does not hold the necessary registration, approval authorization or license. Except as otherwise provided by Sygnum, it is not allowed to modify, copy, distribute or reproduce, display, license, or otherwise use any content for commercial purposes. 

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The information in this publication pertaining to Sygnum Bank AG (“Sygnum”) is for general information purposes only, as per date of publication, and should not be considered exhaustive. This publication does not consider the financial situation of any natural or legal person, nor does it provide any tax, legal or investment advice. This publication does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum to purchase or sell any assets. No elements of precontractual or contractual relationship are intended. While the information is believed to be from accurate and reliable sources, Sygnum makes no representation or warranties, expressed or implied, as to the accuracy of the information. Sygnum expressly disclaims any and all liability that may be based on such information, omissions, or errors thereof. Any statements contained in this publication attributed to a third party represent Sygnum‘s interpretation of the data, information and/or opinions provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. Sygnum reserves the right to amend or replace the information, in part or entirely, at any time, and without any obligation to notify the recipient of such amendment / replacement or to provide the recipient with access to the information. Simultaneously, there is no obligation of Sygnum to inform recipients of information, if before provided information later becomes outdated, inaccurate or obsolete, unless otherwise provided by applicable law. The information provided is not intended for use by or distributed to any individual or legal entity in any jurisdiction or country where such distribution, publication or use would be contrary to the law or regulatory provisions or in which Sygnum does not hold the necessary registration, approval authorization or license. Except as otherwise provided by Sygnum, it is not allowed to modify, copy, distribute or reproduce, display, license, or otherwise use any content for commercial purposes.

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