Canadian firm Ledn became reached a crucial milestone becoming the country’s first company to offer a bitcoin-backed loan.
According to a local news outlet, Wealth Professional, the Chief Strategy Officer and Co-Founder of Ledn Mauricio Di Bartolomeo, users can now acquire Canadian dollar loans using their bitcoin as collateral. This means that they don’t have to sell their assets when they need money.
Explaining the matter, Di Bartolomeo said that:
“Before our Bitcoin-backed loans, both ‘hodlers' [those who hold on to their crypto assets rather than sell them] and Bitcoin business operators were at the mercy of the markets when they needed liquidity. With Ledn, they now have access to a source of liquidity while they await more favorable market conditions…Ledn loans may also be a more tax advantageous way to access liquidity: whereas on the one hand, sellers of Bitcoin are subject to taxes on their profits, on the other hand, interest payments on Ledn loans may be tax deductible.”
Bylls Becomes the First Company to use Ledn’s Services
Bylls, Canada’s largest Bitcoin payment processing company was the first to use Ledn’s services, helping the firm achieve its first crucial milestone. According to the CEO of Bylls Francis Pauliot, the loan allowed them to leverage the bitcoin investment they had, but could not use. He said:
“We are very excited to be the first company to use this service, which will finally allow us to maintain our policy of holding profits in Bitcoin. This is a game changer.”
Cold Storage for Collateralized Bitcoin
Following the announcement of bitcoin-backed loans, Ledn has also launched a cold storage that it will use to secure the collateralized bitcoin. According to the CEO and Co-Founder of Ledn Adam Reeds, the proprietary custodial vaulting solution will go a long way to help the company provide value to its customers.
Speaking about this and the trust that Bylls has accorded them, Reeds said that:
“With all of the key pieces now in place to collateralize and process secure loans, we are proud of the progress that Ledn is making to provide value to the Canadian Bitcoin community. As an established and trusted player in the Canadian Bitcoin ecosystem, we are thrilled to be working with Bylls and look forward to more ‘hodlers' enjoying the flexibility of our service.”