{"id":6442,"date":"2026-02-18T22:16:43","date_gmt":"2026-02-18T22:16:43","guid":{"rendered":"https:\/\/digkrypton.com\/index.php\/2026\/02\/18\/ledn-sells-188m-bitcoin-backed-bonds-in-first-of-its-kind-deal\/"},"modified":"2026-02-18T22:16:43","modified_gmt":"2026-02-18T22:16:43","slug":"ledn-sells-188m-bitcoin-backed-bonds-in-first-of-its-kind-deal","status":"publish","type":"post","link":"https:\/\/digkrypton.com\/index.php\/2026\/02\/18\/ledn-sells-188m-bitcoin-backed-bonds-in-first-of-its-kind-deal\/","title":{"rendered":"Ledn Sells $188M Bitcoin-Backed Bonds in First-of-Its-Kind Deal"},"content":{"rendered":"

Bitcoin Magazine<\/a><\/p>\n

Ledn Sells $188M Bitcoin-Backed Bonds in First-of-Its-Kind Deal<\/a><\/p>\n

<\/div>\n

Crypto lender Ledn Inc. has sold $188 million in securitized bonds backed by Bitcoin-linked loans, marking a first-of-its-kind deal in the asset-backed debt market.<\/p>\n

The transaction includes two bond tranches, according<\/a> to Bloomberg,<\/em> one of which received an investment-grade rating and priced at a spread of 335 basis points over the benchmark rate, according to people familiar with the matter. Jefferies Financial Group Inc. served as the sole structuring agent and bookrunner.<\/p>\n

The bonds are secured by a pool of more than 5,400 consumer loans issued by Ledn, where borrowers used their Bitcoin holdings as collateral, according to an S&P Global Ratings report<\/a>.\u00a0<\/p>\n

The loans carry a weighted average interest rate of 11.8%.<\/p>\n

Bitcoin\u2019s price volatility remains a central risk. Loans tied to the cryptocurrency can fall underwater if prices decline sharply.\u00a0<\/p>\n

\n

JUST IN: Crypto lending firm Ledn sold $188 million of securitized bonds backed by Bitcoin, making it the first ever BTC deal in the market for asset-backed debt \u2014 Bloomberg <\/p>\n

\u2014 Bitcoin Magazine (@BitcoinMagazine) February 18, 2026<\/a>\n<\/p><\/div>\n

S&P\u2019s Ledn bitcoin bond ratings<\/h2>\n

S&P said investors may be partly protected because Ledn uses algorithmic liquidation to sell Bitcoin collateral when a default trigger is reached, applying the proceeds to repay outstanding loans.<\/p>\n

The report noted that bitcoin\u2019s sharp decline in early February forced Ledn to liquidate a \u201csignificant share\u201d of loans slated for the deal. S&P said all liquidations were executed below an 81.4% LTV threshold, shifting the portfolio mix toward fewer loans and more cash in the funding account, while keeping the total collateral package at $200 million.<\/p>\n

S&P\u2019s analysis focused on borrower default behavior, recovery rates during liquidation, and concentration risk.\u00a0 The agency said margin-driven defaults represent the most acute stress scenario because liquidations occur when bitcoin prices are falling, potentially into thin or volatile markets where execution slippage matters most.<\/p>\n

Because Ledn underwrites loans primarily based on bitcoin collateral rather than borrower credit profiles, S&P said traditional consumer loan performance metrics are limited.\u00a0<\/p>\n

At the \u2018A\u2019 stress level, the agency applied a conservative 100% default assumption, with modeled stresses for the rated notes including a 79% default rate and 68% recovery for the BBB- class A tranche.<\/p>\n

S&P highlighted structural mitigants including overcollateralization, early amortization triggers, a liquidity reserve funded at 5% of note balance, and Ledn\u2019s automated liquidation engine, which it said has successfully liquidated 7,493 loans over seven years without principal losses.<\/p>\n

Ledn plans to require cash interest payments for renewals starting in 2027, which S&P said reduces liquidity stress over time.\u00a0<\/p>\n

Bitcoin has since recovered modestly but remains about 46% below its October high, trading near $66,000 today.<\/p>\n

This post Ledn Sells $188M Bitcoin-Backed Bonds in First-of-Its-Kind Deal<\/a> first appeared on Bitcoin Magazine<\/a> and is written by Micah Zimmerman<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin Magazine Ledn Sells $188M Bitcoin-Backed Bonds in First-of-Its-Kind Deal Crypto lender Ledn Inc. has sold $188 million in securitized bonds backed by Bitcoin-linked loans, marking a first-of-its-kind deal in the asset-backed debt market. The transaction includes two bond tranches, according to Bloomberg, one of which received an investment-grade rating and priced at a spread […]<\/p>\n","protected":false},"author":0,"featured_media":6443,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-6442","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/6442","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=6442"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/6442\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media\/6443"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=6442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=6442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=6442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}