Ledn, a Canadian crypto lending firm, has announced the acquisition of a regulated digital asset investment manager Arxnovum. The terms of the deal aren’t disclosed.

Arxnovum will be renamed Ledn Asset Management Inc. and will operate as an independent business unit under Ledn, enabling Ledn to offer digital asset investment products to its accredited client base both in Canada and globally.

Ledn is best known in Canada for its Bitcoin-backed loans. It has recently released the world’s first Bitcoin mortgage service which will allow customers to buy real estate with their Bitcoin holdings.

Arxnovum, which was founded last year in Canada, offers investors active and passive strategies to gain exposure to digital assets. It’s registered as an investment fund manager, portfolio manager, commodity trading manager, and exempt market dealer.

“With this acquisition, Ledn will become the first digital asset lender to offer yield fund products under the exempt market dealer registration. It will also allow us to offer more investment opportunities to accredited clients in markets that recognize Canadian securities regulations, to increase their digital asset holdings,” said Ledn co-founder and CEO Adam Reeds.

Ledn has seen exponential growth over the past two years. The company has over 125,000 users in more than 130 countries with 50% of loan clients being in Latin America. As of late last year, assets on the platform exceeded $1.7 billion.

Ledn is valued at around $540 million. Last year the firm successfully raised $70 million in a series B funding round. White Star Capital, Kingsway Capital, Coinbase Ventures, and others are among the lender’s existing backers.

On the Flipside

• The crypto lending market has struggled over the past year. Celsius, a once market-leading platform, went bankrupt in July amid the ongoing crypto winter.

Why You Should Care

Crypto lending platforms like Ledn offer rare refuge in countries with high inflation, rising interest rates, and unemployment. A lender with a broader service suite including crypto investment products offers its users more ways to participate in the digital asset economy.

Read more about the recent struggles of Celsius, a now-defunct crypto lender:
Celsius Faces Trouble Selling Its Stablecoins Amid CEO Resignation

Read about FTX’s plans to acquire Celsius:
FTX Prepares Bid For Celsius Network Following Acquisition Of Voyager Digital