Ledn announced Wednesday the impending launch a bitcoin-backed mortgage product. The company claims it is the first product of its type to hit the marketplace. Details of the announcement:
Ledn clients will be able to use their bitcoin holdings for a mortgage to buy a property, while still enjoying the potential price appreciation of both assets.
Ledn allows clients to access capital and interest-bearing savings accounts as well as bitcoin-backed loans. Clients don’t have to sell any crypto holdings.
According to the company, it has clients in more than 127 countries and 44% are Latin American. “Ledn’s USD loan originations increased by more than 25% and assets on the platform have exceeded $1.7 Billion – a 4000% increase over Q3 2020. The announcement states that the company’s registered users have increased nearly 10x in the same time period.
Ledn stated that the new bitcoin-backed mortgage product will allow clients to mix equal amounts of property and bitcoin. By the end of the first quarter next year, the company aims to have more than $100 million in bitcoin-backed loans.
Ledn observed that there is a growing waitlist for the BTC mortgage product.
The pilot version of the Ledn-backed bitcoin mortgage is currently in use. It will be available to all clients in the U.S.A and Canada by early 2022.
Ledn also announced Wednesday that it had secured $70 million in Series B funding rounds, which brings the company’s valuation to $540million.
White Star Capital and Kingsway Capital are participating venture investors.
In the announcement, the company stated that it will use the new capital to increase its balance sheet in support of rapid growth of its digital asset lending businesses, including its new mortgage product that is bitcoin-backed.