Global digital asset savings and lending platform Ledn has announced the upcoming launch of a bitcoin-backed mortgage product, calling it “the first of its kind to hit the market.” The company also raised $ 70 million, bringing its valuation to $ 540 million.
Bitcoin-backed mortgage – “The first product of its kind to hit the market”
Ledn on Wednesday announced “the imminent launch of a bitcoin-backed mortgage product,” which the company said is “the first of its kind to hit the market.” The announcement details:
This mortgage will allow Ledn’s clients to use their bitcoin holdings to purchase a property while continuing to benefit from the potential price appreciation of both assets.
Ledn offers interest-bearing savings accounts and bitcoin-backed loans, allowing customers to access capital without having to sell their crypto holdings.
The company says it has registered customers in more than 127 countries and 44% of its loan customers are in Latin America. Ledn’s USD loan issuance has grown more than 25-fold and assets on the platform topped $ 1.7 billion, an increase of 4,000% from the third quarter of 2020. Over the course of over the same period, its registered user base grew nearly 10-fold, ”the announcement noted.
Regarding the upcoming bitcoin-backed mortgage product, Ledn explained that “customers will be able to mix an equal amount of bitcoin and real estate collateral as part of the mortgage.” The company is targeting more than $ 100 million in bitcoin-backed mortgage schemes by the end of the first quarter of next year.
Noting that the waiting list for the BTC-backed mortgage product is growing, Ledn noted:
Currently in pilot mode, the Ledn Bitcoin-backed Mortgage is expected to be widely available to customers in the United States and Canada in early 2022.
In addition, Ledn said on Wednesday it had secured $ 70 million in a Series B funding round, “bringing its valuation to $ 540 million.”
Participating venture capitalists include 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.
The announcement adds that the company “will use this new capital to strengthen its balance sheet to support the rapid growth of its digital asset lending business, including its new bitcoin-backed mortgage product.”
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