Ledn and Sygnum Partnership
In a notable development within the digital finance sector, Ledn, a lender specializing in digital assets, has partnered with Sygnum, a Swiss cryptocurrency banking institution, to restructure a substantial $50 million loan that is secured by Bitcoin. This collaboration is being hailed as a pathway for the emergence of tokenized investment vehicles backed by Bitcoin collateral.
Refinancing Arrangement
The refinancing arrangement reflects Ledn’s prior syndicated loan that was also valued at $50 million, initially established in 2024. However, the recent deal has garnered significant interest, being twice oversubscribed, suggesting a robust demand from institutional investors. Typically, this oversubscription means that the funds sought by investors surpass the available amount, leading to either a partial allocation of requested funds or an expansion of the loan to draw in additional capital.
Tokenization of the Loan
Notably, a segment of this loan has been transformed into a tokenized format through Sygnum’s Desygnate platform, which facilitates the issuance of private credit as on-chain investment assets. This tokenization strategy allows for wider distribution among eligible investors.
Market Trends and Demand
The recent oversubscription underscores the increasing appetite for income-generating products that are resistant to inflation, particularly as yields in both traditional finance (TradFi) and decentralized finance (DeFi) markets show signs of stagnation. According to research from Neutrl released earlier this year, yields on stablecoins have dipped below 6%, a stark contrast to the double-digit returns that investors experienced prior to the 2022 market downturn.
Growing Bitcoin Lending Landscape
Ledn’s initiative is part of a growing trend in the Bitcoin lending landscape. In January, another major player, Coinbase, resumed offering Bitcoin-backed loans for customers in the United States, aided by Morpho Labs. Moreover, reports surfaced in July indicating that Twenty One Capital, backed by investment firm Cantor Fitzgerald, is also investigating the viability of dollar loans secured against Bitcoin. In the competitive arena, JPMorgan Chase is contemplating its own Bitcoin-backed loan offerings, with potential plans projected for 2026, albeit subject to change.
Tokenized Private Credit Market
The partnership between Ledn and Sygnum exemplifies the expanding universe of tokenized private credit, which is now recognized as the most rapidly evolving sector within the asset tokenization domain. It is important to note, however, that not every Bitcoin-backed loan is classified as private credit; retail-oriented lending solutions typically fall outside this category.
Current Market Data
Current data indicates that private credit constitutes over half of the total tokenized value on blockchain platforms, with the market for on-chain private credit estimated at $15.6 billion, representing 58% of the tokenized real-world asset sector. Galaxy Digital highlighted in an April report how this segment thrives on the principles of tokenization and programmability, ultimately fostering yield expansion. According to a June review by DeFi protocol Gauntlet alongside RWA.xyz, tokenized private credit currently offers returns in the range of 8% to 12%.
