Ledn Finalizes $188 Million Bond Agreement Secured by Bitcoin – Is Cryptocurrency Financing Reviving?

Ledn has achieved a significant milestone.

The firm successfully completed a $188 million sale of bonds backed by Bitcoin. This marks the inaugural instance of institutional-grade asset-backed securities being created from consumer crypto loans.

A component of the transaction features investment-grade notes set at 335 basis points above the benchmark rate, firmly positioning it within the realm of traditional finance.

The Deal: Ledn issued $188 million in bonds secured by over 4,000 BTC, effectively linking retail lending with capital markets.

The Rating: S&P Global assigned a BBB- rating to the majority of the notes, highlighting volatility risks despite considerable overcollateralization.

The Player: Jefferies Financial Group, a prominent investment banking firm, served as the sole structuring agent and bookrunner.

Is This a Turning Point for Crypto Credit?

Following the collapse of BlockFi and Celsius in 2022, confidence in crypto lending was severely undermined, leading institutions to withdraw. Ledn’s closure of a $188 million deal now indicates a resurgence of interest in regulated, transparent yield.

Large investors seek structured opportunities.

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

Sovereign funds are already accumulating Bitcoin. Now, companies like Ledn are converting crypto loans into conventional securities, making crypto credit appear more recognizable to Wall Street.

Since 2018, Ledn has originated billions in loans, clearly establishing itself as a cautious player that navigated the turmoil rather than contributing to it.

Breaking Down the Bond Mechanics

The bonds are secured by 4,078.87 BTC, valued at approximately $356.9 million during S&P’s assessment. This represents solid collateral on paper.

S&P assigned a BBB- rating to most of the deal, which is reasonable. However, their stress test anticipated a severe 79% default rate at the “A” level. Despite the investment-grade pricing on the senior notes, Bitcoin’s volatility keeps the rating in check.

Jefferies managed the books, adding substantial Wall Street credibility to the arrangement. The structure of the deal is robust, featuring a 5% liquidity reserve and automated liquidations that activate below an 81.4% LTV.

This level of discipline is uncommon in crypto lending.

Ledn just sold $188 million in $BTC-backed bonds. Jefferies structured it. Includes an investment-grade tranche. S&P published a report on the deal. First of its kind.
Same securitization infrastructure used for mortgages, auto loans, and credit cards. Except the collateral is… pic.twitter.com/7kPBYfpLLr

— Fund Breakdown (@FundBreakdown) February 19, 2026

Nonetheless, volatility remains a factor. When Bitcoin fell to $60,000, Ledn was compelled to liquidate some loans to safeguard buffers, resulting in a slight reduction of the original 2x overcollateralization.

This is structured and professional, yet it still relies on Bitcoin.

The success of this bond sale demonstrates that traditional finance is open to engaging with crypto-backed products if the structure resembles familiar asset-backed securities (ABS). It signifies a convergence of crypto assets and traditional financial infrastructure.

Discover: Here are the crypto likely to explode!

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