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Ledn secures $188 million through initial sale of bitcoin-backed bonds in asset-backed sector.
Crypto lender consolidates over 5,400 bitcoin collateralized loans into the first asset-backed securities transaction of this nature.
Key details:
- Ledn issued $188 million in bonds supported by 5,400 bitcoin collateralized consumer loans, with an investment-grade tranche set at +335 basis points.
- Automated liquidation of bitcoin collateral provided protection for asset-backed security investors, even as the cryptocurrency declined.
Ledn, a cryptocurrency lending firm, has finalized the inaugural asset-backed securities (ABS) transaction backed by bitcoin collateral, securing $188 million for crypto credit markets.
Asset-backed securities are financial instruments backed by collections of underlying loans, with investors receiving returns from the cash flows produced by those loans.
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Bloomberg reported that the bonds are backed by a collection of over 5,400 consumer loans provided by the company, each secured by the borrowers’ bitcoin holdings. The loans feature a weighted average interest rate of 11.8%.
The transaction consists of two tranches, with the investment-grade section priced at 335 basis points above the benchmark rate. Jefferies acted as the sole structuring agent and bookrunner, as reported by Bloomberg.
Bitcoin’s price fluctuations have been highlighted, with the leading cryptocurrency by market cap dropping as much as 50% in the last four months to a low of $60,000.
Crypto firm Ledn sells Bitcoin-backed bonds in ABS market first
>First ever deal of its kind in asset-backed debt
>Secured by pool of 5,400 Bitcoin-collateralized loans that consumers took from Ledn at weighted avg rate of 11.8%
>Investment grade tranche priced at +335bps pic.twitter.com/Rx3944uGys— matthew sigel, recovering CFA (@matthew_sigel) February 18, 2026
The framework incorporates automated collateral liquidation when certain thresholds are breached, a mechanism intended to safeguard investors during significant market downturns.
