Cryptocurrency lending platform Ledn has raised $70 million in a Series B funding round to support the growth of its digital assets lending business, including a new Bitcoin-backed mortgage product. The round valued the company at $540 million and was led by 10T Holdings, the company announced on Wednesday. Other investors included Golden Tree Asset Management, Raptor Group, and FJ Labs. Another 11 existing venture investors, such as White Star Capital and Kingsway Capital, followed on in the round. Founded in 2018, Ledn focuses on saving and lending products for Bitcoin and other digital assets. It claims that the startup has over $1.7 billion in assets from clients in 127 countries. Loan originations in dollars increased by more than 25% since the third quarter of 2020, and 44% of loan clients are in Latin America. The Bitcoin-backed mortgage product accepts Bitcoins and properties as collateral for loans to clients that want to purchase new real estate or finance a property, they already own. Loans amounts are equal to 50% of the combined value of both Bitcoins and property.
Already in pilot mode in Canada, the product is expected to be offered broadly in the country and the United States early in 2022. The company targets $100 million in originations by the end of the first quarter of 2022. The cryptocurrency market was worth over $2.2 trillion. Some banks, lenders, and fintechs are testing the technology, but the lack of regulatory clarity and fears of volatility have kept these currencies from becoming fully integrated into products and services. Regarding the mortgage industry, the acceptance of cryptocurrencies by investors lags the development of new products. Among government agencies, there remains significant resistance to accepting cryptocurrencies.