Bitcoin lending platform Ledn raised $70 million in a Series B funding round, leading to a valuation of the platform at $540 million, the company said in a statement Wednesday, according to Bitcoin Magazine.
The round was led by 10T Holdings, an investment firm specializing in cryptocurrency companies. In addition, existing venture capitalists have also joined, including London-based Kingsway Capital, Coinbase Ventures, billionaire hedge fund manager Alan Howard, John Pfeffer, and CMT Digital.
Apart from this, Ledn also announced its new bitcoin-backed mortgage product. This innovative offering allows clients to use their Bitcoin holdings to purchase real estate, allowing them to acquire a property while benefiting from Bitcoin's price appreciation.
“Clients will be able to blend an equal amount of Bitcoin and property collateral as part of the mortgage loan,” according to a statement sent to Bitcoin Magazine. “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.”
The proposal is currently in pilot mode. The company plans to launch the product broadly to its customers in the U.S. and Canada early next year and is targeting over $100 million in bitcoin-backed mortgages by the end of the first quarter.
“Most people that hold extensive wealth in Bitcoin still can’t utilize their assets to qualify for a mortgage at a bank,” Adam Reeds, Ledn co-founder and CEO, said in a statement. “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.”
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.