TL;DR Breakdown
- Ledn announces an upcoming rollout of its BTC-Backed mortgage service.
- The lending company raises $70 million to take its valuation to about $540 million.
Ledn announces the rollout of its BTC-backed mortgage plan for its users. The company said this is the first-ever BTC loaning project in the housing and lending market. It raised $70 million, which now takes its valuation to around $540 million.
Per an official statement from Ledn on DEC. 15, 2021, Ledn will now allow clients to buy property without selling their BTC. It added that this will benefit the clients since they will now enjoy the value increment from BTC and the property as they service the loan with time.
A BTC- Backed mortgage service hit the market soon
Ledn is a company that offers savings accounts that have interests for clients and BTC-backed loans. This feature allows users to access the property while still holding their crypto stash.
The lending firm says it has customers from over 127 countries, but about 44% of them all come from Latin America. Their announcement also said its loans have multiplied by over 25X, and its assets now exceed a value of $1.7 billion. This value is a 4,000% increase from the Q3 of 2021. At the same time, the company’s user base also grew by almost ten times.
Per Ledn, this service will allow its clients to offer a value of BTC that is equivalent to the property as collateral for the loan. It added that it targets to have over $100 million in BTC-backed loans by the end of March 2021. It also said that the pilot project of this service would concentrate in the US and Canada.
The firm said that its’ $70 million collections from the Series B funding round would help them get an advantage in their balance sheet for expansion. It plans to support the fast growth of its mortgage services and the new BTC project.
Ledn follows the suite of financial banks to introduce BTC-backed loans
The news about Ledn preparing to offer BTC-backed mortgage services comes after leading financial institutions in the US table considered a similar option. Instead of adding the coin itself to their balance sheets, these banks plan to use BTC-backed loans or trade the BTC futures.
Goldman Sachs is one of these Wall Street banks that are considering these moves. However, these banks are looking for different solutions for handling loans with BTC as collateral. Some are willing to include the digital coin in their balance sheet, while others are looking for a third party to liquidate the BTC.
However, none of the banks has announced a complete plan on tackling the BTC-backed loans. They also do not have a green light from the US SEC. This fact makes Ledn the premiere firm to announce BTC-backed loaning services officially.
