Crypto lender packages more than 5,400 bitcoin collateralized loans into first asset backed securities transaction of its kind.
The stablecoin issuer’s previously undisclosed investment valued the lender at about $500 million, according to a person familiar with the transaction.
The stablecoin issuer's investment comes as BTC-backed lending scales rapidly, with Ledn surpassing $1 billion in originations this year and positioning for global expansion.
BTC has tumbled nearly 9% this week, while ETH, SOL declined even further and XRP outperformed.
The crypto lender also crossed $100 million in annual recurring revenue, the firm reported.
Galaxy said the long-dormant wallet sold 80,000 BTC through the asset manager as part of the investor's estate planning.
Ledn said the shift is part of its broader strategy to simplify its product and sharpen its focus around bitcoin.
SUI, BCH and Hedera's HBAR led Friday gains in the CoinDesk 20 Index, with one analyst saying this week's crypto rally is likely the beginning of BTC's climb to fresh record prices.
Total crypto lending is still down 43% from its 2021 peak, but decentralized platforms have seen a significant growth, Galaxy reported.
The bitcoin lending market will get much more competitive in coming years, and that's good for consumers.
10x Research’s founder Markus Thielen said the Federal Reserve’s decisions remain Bitcoin’s “primary risk,” slowing it from another price surge.
Crypto founders have reported losing business accounts, with personal accounts also subject to debanking.
Ledn’s groundbreaking $50 million Bitcoin-backed loan, syndicated by Sygnum, is set to transform retail lending and institutional crypto finance.
The platform witnessed a 29.8% jump in retail lending between the first and second quarters.
Cryptocurrency lending company Ledn is offering customers crypto-backed loans where all the assets remain locked up with a qualified custodian, as the company adapts its centralized finance approach to a post-FTX world.