Digital Assets: Ledn Lands $70M For World’s First Bitcoin-Backed Mortgage Product
The round valued Ledn at $540 million.
Global digital asset savings and credit platform Ledn announced a $70 million Series B funding round led by 10T Holdings and joined by new investors Golden Tree Asset Management, Raptor Group and FJ Labs. The company also announced its new bitcoin-backed mortgage product, the first product of its kind that will enable Ledn clients to use their bitcoin (BTC) holdings to purchase a property while continuing to benefit from potential price appreciation of both assets. (CISION PR Newswire)
Existing venture investors also followed-on in the round, including White Star Capital, Kingsway Capital, Coinbase Ventures, Alan Howard, Parafi Capital, Susquehanna Private Equity Investments, Global Founders Capital, Hashed, CMT Digital, Ascendant Capital and John Pfeffer.
BTC-backed mortgages
Ledn is currently running a pilot of the Ledn Bitcoin-backed mortgage. Clients may raised a mortgage loan by collaterizing both their bitcoin and property in equal proportions – a unique collateral structure which relies on the stability of real estate to buffer against the volatility of bitcoin.
“Most people that hold extensive wealth in Bitcoin still can’t utilize their assets to qualify for a mortgage at a bank,” said Adam Reeds, co-founder & CEO at Ledn.”Our clients want to diversify their portfolio in order to protect their wealth and then utilize that wealth for instances such as purchasing a home, but one should not come at the expense of the other. That is why we are launching this product, in order to provide access to key financial products for those who choose to invest outside the mainstream of legacy banks.”
Ledn – solid growth
- Established a robust client base in 127 countries with 44% of loan clients in Latin America
- Since the third quarter of 2020, Ledn’s USD loan originations have increased by more than 25x
- Assets on platform have exceeded $1.7 billion – representing a 4,000% increase from Q3 2020.
- In the same period, its registered user base has grown nearly 10X.
Ledn will apply the new funding to boost hiring, development of innovative digital asset financial products, and expand the reach of its current product range.
Related Story: Crypto Lending Platform Celsius Network Raises $400M
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