Global digital asset savings and credit platform Ledn has announced the upcoming launch of a bitcoin-backed mortgage product, calling it “the first product 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 announced Wednesday “the imminent launch of a bitcoin-backed mortgage product,” which the company says is “the first product of its kind to hit the market.” The details of the announcement:
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 rate savings accounts and bitcoin-backed loans, allowing clients to access capital without having to sell their crypto assets.
The company claims to have registered clients in more than 127 countries and 44% of its credit clients are in Latin America. “Ledn’s dollar loan origins have increased by more than 25 times and assets on the platform have exceeded $ 1.7 billion, representing an increase of 4,000% over the third quarter of 2020. In In the same period, its registered user base grew almost 10 times, ”the ad notes.
Regarding the upcoming bitcoin-backed mortgage product, Ledn explained that “clients will be able to combine an equal amount of bitcoin and home equity as part of the mortgage loan.” The company is targeting more than $ 100 million in bitcoin-backed mortgage origination 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, Ledn's bitcoin-backed mortgage is scheduled to be widely available to customers in the US and Canada in early 2022.
Additionally, Ledn announced Wednesday that it has 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 and support the rapid growth of its digital asset lending business, including its new bitcoin-backed mortgage product.”