Ledn, a Toronto-based digital asset savings and credit platform, has collected C$70 million in Series B financing. The round brings Ledn’s valuation to C$540 million. 10T Holdings led, with participation from Ascendant Capital, CMT Digital, Coinbase Ventures, FJ Labs, Global Founders Capital, Golden Tree Asset Management, Kingsway Capital, Parafi Capital, Raptor Group, Susquehanna Private Equity Investments, White Star Capital and others.
TORONTO, Dec. 15, 2021 Ledn Inc. (“Ledn”), a global digital asset savings and credit platform, today announced that it successfully raised $70 million in a Series B funding round which brings its valuation to $540 million. 10T Holdings led the Series B. Golden Tree Asset Management, Raptor Group and FJ Labs were among the list of new Ledn investors. In addition, 10T Holdings’ Managing Partner and CEO Dan Tapiero will be joining Ledn’s board of directors.
Ledn 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. All existing venture investors 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.
Additionally, the company announced the impending launch of a Bitcoin-backed mortgage product, the first product of its kind to hit the market. This mortgage 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, which relies on the stability of real estate to buffer against the volatility of Bitcoin, was designed to provide clients with a generous window to service their Bitcoin collateral during times of high market volatility.
Currently in pilot mode, the Ledn Bitcoin-backed mortgage is slated to be made broadly available to clients in the US and Canada in early 2022. The company already has a growing waitlist for the product, and is targeting over $100 million in Bitcoin-backed mortgage originations by the end of Q1 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 & 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’s notable growth, including establishing a robust client base in 127 countries with 44% of loan clients in Latin America, was a key driver for 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 Q3 2020. In the same period, its registered user base has grown nearly 10X.
In addition, Ledn has achieved an industry-leading 95% client satisfaction rating due to their obsessive focus on providing a best-in-class client experience. The company will use the Series B funds to accelerate the pace of new team hires, continue to develop innovative digital asset financial products, and expand upon an already robust segment of localized products that are tailored to meet the needs of English, Spanish and Portuguese-language users across the globe.
“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.”
“At Ledn, we believe in allowing people from around the world to access cryptocurrencies as a way to secure a better financial future. This investment will enable Ledn to help more people save in Bitcoin and other strong digital assets to preserve their wealth and escape poverty traps,” said Mauricio Di Bartolomeo, co-founder and CSO at Ledn. “As our company grows, Ledn clients should expect us to continue investing in financial education, broader access to our products, and for us to continue providing them with the best client experience.”
Ledn provides financial products with a mission to help clients across the globe unlock the power of digital assets to build wealth for the long term. With registered clients from over 127 countries, Ledn offers interest-bearing savings accounts and Bitcoin-backed loans, enabling clients to access dollars or additional Bitcoin without needing to sell any of their existing holdings.