Digital asset lender Ledn has collaborated with Swiss crypto bank Sygnum to refinance its $50 million Bitcoin-backed loan, a move the companies claim paves the way for tokenized, Bitcoin-collateralized investment opportunities.
This refinancing aligns with Ledn’s $50 million syndicated loan from 2024, and the latest facility was reportedly twice oversubscribed, as announced on Wednesday.
An oversubscribed loan offering reflects that investor demand surpasses the available loan allocation, often indicating robust institutional interest. In such scenarios, investors may only receive a portion of their desired allocation, or the issuer might expand the loan size to attract more capital.
A segment of the loan was tokenized using Sygnum’s Desygnate platform, which enables private credit deals to be presented as onchain investment products. Through tokenization, the facility can reach a broader range of qualified investors.
Source: Sygnum Bank
The companies noted that the oversubscription illustrates rising investor demand for inflation-resistant income products, particularly as yields in both traditional markets and DeFi continue to stabilize.
Earlier this year, DeFi analytics firm Neutrl reported a trend of flattening yields, pointing out that stablecoin APRs had fallen below 6% — significantly lower than the double-digit returns seen in the previous market cycle before the 2022 bear market.
Ledn is not the only player in the Bitcoin lending arena. In January, Coinbase relaunched Bitcoin-backed loans for US customers, facilitated by Morpho Labs.
In July, Cointelegraph mentioned that Cantor Fitzgerald-backed Twenty One Capital was investigating US dollar loans secured by Bitcoin collateral. Additionally, JPMorgan Chase is reportedly contemplating its own Bitcoin-backed loan offerings, with a possible launch in 2026 — although timelines may vary.
Related: Ledn ditches ETH, shifts to full custody model for Bitcoin loans
Private credit powers tokenization boom
The Sygnum–Ledn arrangement falls within the tokenized private credit sector, currently the largest and quickest-growing segment of asset tokenization.
However, not all Bitcoin-backed loans are classified as private credit. Retail-oriented lending products are typically seen as outside this category.
As per industry data, private credit now accounts for over half of all tokenized value onchain. As of Wednesday, onchain private credit markets were valued at $15.6 billion, which represents 58% of the tokenized real-world asset market.
The growth of tokenized private credit. Source: RWA.xyz
In its April report on crypto lending, Galaxy Digital noted that onchain private credit “rests on tokenization, programmability, utility, and, as a result, yield expansion.”
Typically, tokenized private credit opportunities offer yields ranging from 8% to 12%, according to a June analysis by DeFi protocol Gauntlet and industry platform RWA.xyz.
Related: ‘Before Bitcoin, my most successful investment was shorting the Bolivar’ — Ledn co-founder
