Ledn Inc., a global digital asset savings and credit platform, announced that it successfully raised $70 million in a series B funding round, led by 10T Holdings, bringing the company’s valuation to $540 million. Golden Tree Asset Management, Raptor Group, and FJ Labs are newly joined investors of Ledn Inc. Additionally, 10T Holdings' managing partner and CEO Dan Tapiero will be joining Ledn’s board of directors.
Ledn plans to use this capital in order to strengthen its balance sheet and support the rapid growth of its digital asset lending business, including its new Bitcoin-backed mortgage product – the first product of its kind to hit the market.
Essentially, this mortgage product will enable Ledn clients to use their Bitcoin holdings to purchase a property while continuing to benefit from potential price appreciation of both assets. Clients will be able to blend an equal amount of Bitcoin and property collateral as part of the mortgage loan. This unique collateral structure relies on the stability for real estate to buffer against the volatility of Bitcoin. It was designed to provide clients with a generous window to service their Bitcoin collateral during times of high market volatility.
While the program is still in pilot mode, the Ledn Bitcoin-backed mortgage is already slated to be made broadly available to clients in the U.S. and Canada in early 2022. The company already has a growing waiting list for its products, and is targeting over $100 million in Bitcoin-backed mortgage originations by the end of the first quarter in 2022.
"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 and 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 has an established clientele base in 127 countries with 44% of loan clients in Latin America, which was a key driver in this fundraise. Since the third quarter of 2020, Ledn’s USD loan originations have increased by more than 25x and assets on platform have exceeded $1.7 billion, representing a 4,000% increase from the third quarter of 2020. In the same period its user base expanded nearly 10 times over.
"Ledn's business model is a true win-win for investors and borrowers alike as it gives investors the ability to earn strong returns on their digital asset investments, while providing great interest rates to borrowers," said Dan Tapiero, managing partner and CEO at 10T Holdings. "We are proud to lead this investment in Ledn, and it is clear that Ledn is primed for rapid growth and worldwide expansion."
