Toronto-based cryptocurrency savings and lending platform Ledn has revealed the completion of a funding round worth $30m. The Series A round, overseen by Kingsway Capital in London, features a string of fresh investors in Ledn, joining its existing partners including Coinbase Ventures, CMT Digital and Global Founders Capital.
Since its previous funding round, the number of cryptocurrency assets available on the Ledn platform has risen by more than 320%. The proceeds of this latest funding round are to be used to expand the Ledn in-house workforce and establish a worldwide presence, inviting crypto enthusiasts in all four corners of the globe to utilize Ledn’s technology and innovative products to leverage their cryptocurrency holdings.
Ledn: Cryptocurrencies are the new way to build “generational wealth”
According to Buy Bitcoin Worldwide, Ledn ranks in the top three of the world’s leading cryptocurrency savings accounts. A large factor behind Ledn’s meteoric rise is its ability to help owners of digital assets accrue annual interest worth up to 11.00% on the USDC stablecoin pegged to the fiat US dollar. It also offers interest worth up to 6.10% per annum on up to two Bitcoins, with any additional Bitcoins generating interest set at 2.25% per annum.
Adam Reeds, co-founder and CEO of the Ledn platform, believes cryptocurrency is the “fastest-growing asset class” when it comes to fostering “generational wealth”. Reeds believes Ledn has the capability to deliver a “simple and secure solution” that empower users to take part in the burgeoning cryptocurrency economy.
Individuals can create savings accounts specifically for storing Bitcoin or the USDC stablecoin and generate monthly compound interest. The accounts, launched in collaboration with Genesis Capital, help shield savings from local currency inflation. In addition, the accounts make crypto-assets work harder by generating interest rates that comfortably surpass any interest rates available with conventional high-street banks.
Bitcoin-backed loans made easy
Ledn also offers the ability to borrow funds by using Bitcoin as collateral. Bitcoin-backed loans are considered more beneficial than conventional dollar loans as individuals get to retain the upside of their Bitcoin position. Once the dollar loan is repaid to Ledn, users receive their Bitcoin back. It’s a tax-efficient way of borrowing fiat currency. Exchanging Bitcoin for dollars is a taxable event, however taking a loan with Ledn using Bitcoin as collateral is not. In fact, all interest expenses because of the loan may be used as a tax-deductible expense.
Ledn is considered a safe haven for digital assets like Bitcoin and USDC, given that all client assets are housed with the platform’s custodian BitGo. BitGo is the market leading ‘Qualified Custodian’ that’s designed solely to store digital assets. It also boasts one of the most extensive insurance policies in the sector, giving clients total peace of mind.
In addition to its partnership with BitGo, Ledn also provides total transparency over its proof-of-reserves. It’s said to be the only crypto lending firm that undertakes formal attestation, with a review of client assets and its lending operations commenced periodically.
Mauricio Bartolomeo, co-founder of Ledn, said that this proof-of-reserves is a “core component of how [Ledn] manages the funds [its] clients entrust to [them]”.