Ledn Raises $ 70 Million to Launch Bitcoin-Backed Mortgages

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Ledn recently raised $ 70 million in an all-equity Series B funding round. The funding round was led by 10 holding companies, and the other participants were Raptor Group, Golden Tree Asset Management, FJ Labs. The company now plans to use the amount raised to launch Bitcoin-backed mortgages. Ledn also plans to use the funds to recruit more staff, develop new digital assets and financial products.

Bitcoin-backed mortgages

Image source: Financial Times

The idea of ​​Bitcoin-backed mortgages is fascinating. Let’s say you are a Bitcoin holder in need of money. You invested in BTC when it was $ 3,000, and now it’s $ 50,000. If you sell your coins and make a profit for the money you need, then you will have to pay capital gains tax on them. A smarter way to deal with the situation is to take advantage of a mortgage or Bitcoin-backed loan program where you lend your Bitcoin for a loan, and once the repayment is made, you get it back.

It’s not a new idea, but in the cryptocurrency space, it’s a very common way to get money without having to make a profit. The Ledn Bitcoin-backed mortgage will be available to a select group of people in the United States and Canada in 2022, and its waiting list continues to grow. Note that the only collateral for the loans will not be Bitcoin. Lending would also include other assets, most likely real estate.

Debt

Debt

Image source: the participant effect

Bitcoin-backed mortgages show a great example of the benefits of debt. When used to their advantage, they are very powerful and can help save you a lot of money. In this case, we can see that the debt is being used to save the tax that would otherwise have to be paid. So, we cannot say that debt is a bad thing because the bad part is called “bad debt”. This is the one where you pay interest on the money borrowed by you.


What do you think of Ledn’s fundraising to launch Bitcoin-backed mortgages? And do you think the idea of ​​taking out loans to save taxes is fascinating? Let us know in the comments below. Also, if you found our content informative, like it and share it with your friends.

Also read: Shattering crypto bubble could cause 90% drop, investment adviser says.


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