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 line with Bloomberg, one in all which obtained an investment-grade ranking and priced at a selection of 335 foundation factors over the benchmark fee, in line with folks acquainted with the matter. Jefferies Monetary Group Inc. served as the only structuring agent and bookrunner.
The bonds are secured by a pool of greater than 5,400 client loans issued by Ledn, the place debtors used their Bitcoin holdings as collateral, in line 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 threat. 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 buyers 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 “vital share” of loans slated for the deal. S&P mentioned all liquidations have been executed under an 81.4% LTV threshold, shifting the portfolio combine towards fewer loans and extra cash within the funding account, whereas retaining the full collateral bundle at $200 million.
S&P’s evaluation targeted on borrower default conduct, restoration charges throughout liquidation, and focus threat. The company mentioned margin-driven defaults characterize essentially the most acute stress state of affairs as a result of liquidations happen when bitcoin costs are falling, doubtlessly into skinny or unstable markets the place execution slippage issues most.
As a result of Ledn underwrites loans based on bitcoin collateral somewhat than borrower credit score profiles, S&P mentioned conventional client mortgage efficiency metrics are restricted.
On the ‘A’ stress degree, 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 notice stability, 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% under its October excessive, buying and selling close to $66,000 at this time.
