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Crypto firm Ledn sacks $ 70 million in Series B and launches Bitcoin-backed mortgages

LEDN – a global bitcoin lending platform based in Toronto – has announced the first bitcoin-backed mortgage product of its kind. This follows a $ 70 million Series B funding round, which now valued the company at $ 540 million.

Bitcoin-covered mortgages

As announced by LEDN, this funding round was led by 10T Holdings and included new investors such as Raptor Group, Golden Tree Asset Management and FJ Labs. In addition, Dan Tapiero – CEO and Managing Partner of 10T Holdings – plans to join LEDN’s board of directors.

The new funds will be used for a variety of purposes, including strengthening LEDN’s balance sheet and supporting its new Bitcoin-backed mortgage product. The mortgage will allow borrowers to provide an equal mix of bitcoin and real estate as collateral for their loan so they are not forced to sell their crypto stack.

This structure is intended to use the “stability” of real estate as a buffer against the current volatility of Bitcoin. In fact, the primary cryptocurrency was down 14% last week, which was precisely powered by a $ 2.5 billion liquidation cascade.

Adam Reeds – Co-Founder and CEO of LEDN – recognized the limited ability of Bitcoin HODLers to qualify for mortgages.

“Our clients want to diversify their portfolio in order to protect their assets and then use these assets to buy a home, for example, but one shouldn’t come at the expense of the other,” he said of the product.

LEDNs growth

LEDN has seen significant growth over the past year, increasing its inventory of assets on the platform to $ 1.7 billion – a 4,000% increase from Q3 2020. Since then, its user base has grown ten-fold.

LEDN currently offers Bitcoin and USDC loan / savings products. It enables people to secure funding with no creditworthiness instead of using over-secured bitcoin loans to make a profit on every customer. With an LEDN account, users can earn over 6% APY on their first 0.5% Bitcoin and 9.5% APY on any amount of USDC. However, these prices change monthly.

So far, the platform has been remarkably popular with Latin American investors, who make up 44% of their client base.

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