Savings and credit platform in cryptocurrencies announces financing round for USD 2.7 million

Canadian platform Ledn, which specializes in providing savings and loans for digital assets, announced that it had reached USD 2.7 million in its latest financing round led by White Star Capital.

In addition to the Digital Asset Fund from White Star Capital, major players from the cryptocurrency ecosystem such as Coinbase Ventures, the investor wing of the popular US stock exchange, took part in the successful round in Ledn.

Ledn became popular after taking out his first bitcoin-backed loan in Canada in 2018. This allowed for growing popularity and customers reaching geographic reach of up to 100 countries.

Savings and credit platform in cryptocurrencies announces financing round for USD 2.7 million
Savings and credit platform in cryptocurrencies announces financing round for USD 2.7 million

The platform has since been offering Bitcoin-backed loans at a rate of 6.10%, one of the highest in the entire ecosystem. It also allows lending of digital assets against the stablecoin USDC at an interest rate of 12.25%.

According to the company’s press release, Ledn “Will use the proceeds from the capital increase to accelerate growth and provide the same level of transparency and service quality to global markets.”.

Ledn was one of the first crypto asset lending platforms to be formally certified test certification by an independent accounting firm, Armanino LLP, one of the world’s leading accounting and advisory firms.

Adam Reeds, Co-Founder and CEO, stated in relation to the fundraising process that “As we expand our product by not offering a commission to start operations and enter new markets in the coming months, we couldn’t be more excited to partner with this select group of top venture capitalists who believe in our mission. “

Ledn offers three product suites on its platform: Bitcoin and USDC savings accounts that pay interest on BTC or USDC with no minimum savings, and bitcoin-backed fiat loans “BORROW” and its bitcoin loans to buy more. Bitcoins «B2X».

The Ledn investment was the third of the cross-platform investment in technology White Star Capital, which focuses on supporting international startups based on cryptography and blockchain companies.

Regarding the investment, the general partner of the company Sep Alavi pointed this out “The Ledn team has built a robust platform that has grown in size in a short period of time.”

Bitcoin loans are expected to be on trend in 2021

Crypto-asset lending is a type of trade that is growing in popularity thanks to the entry into the decentralized financial sector scene and in part due to the pressure the entire ecosystem had with the rise in the historical prices of Bitcoin in 2021.

As a non-inflationary digital currency that is not ruled by individuals or companies, its popularity has resulted in the products developed around it attracting a great deal of interest from the average investor with a penchant for blockchain technology.

Set to expand its crypto assets through cryptocurrency-based loans, Ledn is joining a select group of platforms that have the benefit of using Bitcoin or stablecoins like USDC to take advantage of some of the benefits of traditional funding with no technical knowledge and advanced DeFi protocols.

Nexus, Celsius Network, Hodlnaut and BlockFi, along with Ledn, are some of the options that the passionate Bitcoin holder could use to get or extend a loan without having to forego their BTC-based portfolio for a comfortable annual rate to get interest.

There is no doubt that lending with this cryptocurrency could have a significant reboot beyond decentralized financial protocols as the price of Bitcoin becomes increasingly popular and pervasive with the average person.

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