Digital banks making significant strides

Sygnum Bank, a digital asset banking group with approximately $4.5 billion in client assets, has issued a groundbreaking $50 million Bitcoin-backed syndicated loan to Ledn, a Canadian digital asset savings and credit platform. This marks the first time a regulated bank has structured a syndicated loan using Bitcoin as collateral. The loan, which has a two-year term, is secured by an equivalent amount of Bitcoin held in cold storage custody. Sygnum acted as the lead arranger and agent for the facility, with other participants including a Swiss-regulated bank.

This innovative financial product demonstrates the growing maturity of the digital asset lending market and showcases Sygnum's ability to bridge traditional and decentralized finance. The loan provides Ledn with additional capital to expand its digital asset lending offerings while allowing institutional investors to gain exposure to the digital asset lending market. This transaction highlights the increasing acceptance of Bitcoin as a legitimate form of collateral in traditional financial structures.

“Partnering with Sygnum to secure the first Bitcoin-backed syndicated loan facility is a landmark achievement for Ledn. This collaboration not only underscores our commitment to pioneering innovative financial solutions but also marks a significant step forward in integrating crypto assets into mainstream financial markets,” noted John Glover, Chief Investment Officer at Ledn. “We are excited to work with Sygnum to leverage this new source of liquidity to further drive our growth and continue offering secure and transparent financial products to our clients.”

Also making progress in the crypto scene is Taurus SA, a leading digital asset infrastructure provider for large financial institutions. The Swiss company has entered into a partnership agreement with State Street, a major global financial services firm, to create a comprehensive digital asset platform for institutional investors. This initiative is designed to meet the growing demand from institutional clients for secure and efficient access to the digital asset market.

The partnership will leverage Taurus' fully integrated, custody, tokenization, and node-management solutions to automate the issuance and servicing of digital assets, including digital securities and fund management vehicles, in accordance with applicable institutional standards. Moreover, State Street will be leveraging three of Taurus’ industry-leading products including Taurus-PROTECT, Taurus-CAPITAL, which streamlines the process of creating and managing tokenized assets throughout their lifecycle, and Taurus-EXPLORER, which provides blockchain connectivity to dozens of different blockchain protocols.

By combining State Street's global reach and regulatory compliance capabilities with Taurus' technology, the platform is expected to provide a robust and compliant solution for institutions looking to engage with digital assets.

(Press release/RAN)