Crypto lender Ledn Inc. has offered $188 million in securitized bonds backed by Bitcoin-linked loans, marking a first-of-its-kind deal within the asset-backed debt market.
The transaction consists of two bond tranches, in keeping with Bloomberg, considered one of which obtained an investment-grade score and priced at a diffusion of 335 foundation factors over the benchmark fee, in keeping with folks acquainted with the matter. Jefferies Monetary Group Inc. served as the only real structuring agent and bookrunner.
The bonds are secured by a pool of greater than 5,400 shopper loans issued by Ledn, the place debtors used their Bitcoin holdings as collateral, in keeping with an S&P International Scores report.
The loans carry a weighted common rate of interest of 11.8%.
Bitcoin’s value volatility stays a central danger. Loans tied to the cryptocurrency can fall underwater if costs decline sharply.
JUST IN: Crypto lending agency Ledn offered $188 million of securitized bonds backed by Bitcoin, making it the primary ever BTC deal out there for asset-backed debt — Bloomberg
— Bitcoin Journal (@BitcoinMagazine) February 18, 2026
S&P’s Ledn bitcoin bond rankings
S&P mentioned traders could also be partly protected as a result of Ledn makes use of algorithmic liquidation to promote Bitcoin collateral when a default set off is reached, making use of the proceeds to repay excellent loans.
The report famous that bitcoin’s sharp decline in early February compelled Ledn to liquidate a “important share” of loans slated for the deal. S&P mentioned all liquidations have been executed beneath an 81.4% LTV threshold, shifting the portfolio combine towards fewer loans and additional cash within the funding account, whereas protecting the overall collateral package deal at $200 million.
S&P’s evaluation centered on borrower default conduct, restoration charges throughout liquidation, and focus danger. The company mentioned margin-driven defaults symbolize essentially the most acute stress state of affairs as a result of liquidations happen when bitcoin costs are falling, probably into skinny or risky markets the place execution slippage issues most.
As a result of Ledn underwrites loans based on bitcoin collateral reasonably than borrower credit score profiles, S&P mentioned conventional shopper mortgage efficiency metrics are restricted.
On the ‘A’ stress stage, the company utilized a conservative 100% default assumption, with modeled stresses for the rated notes together with a 79% default fee and 68% restoration for the BBB- class A tranche.
S&P highlighted structural mitigants together with overcollateralization, early amortization triggers, a liquidity reserve funded at 5% of word steadiness, and Ledn’s automated liquidation engine, which it mentioned has efficiently liquidated 7,493 loans over seven years with out principal losses.
Ledn plans to require money curiosity funds for renewals beginning in 2027, which S&P mentioned reduces liquidity stress over time.
Bitcoin has since recovered modestly however stays about 46% beneath its October excessive, buying and selling close to $66,000 right now.
This publish Ledn Sells $188M Bitcoin-Backed Bonds in First-of-Its-Sort Deal first appeared on Bitcoin Journal and is written by Micah Zimmerman.
