Ledn, a cryptocurrency lending company, has completed the first Bitcoin collateral-backed asset-backed securities (ABS) transaction, raising $188 million for the crypto lending markets.
Asset-backed securities are bonds backed by pools of underlying loans, with investors receiving payments on the cash flows generated by those loans.
Bloomberg reported that the bonds are collateralized by a pool of more than 5,400 consumer loans issued by the company, each backed by borrowers’ bitcoin holdings. The loans carry a weighted average interest rate of 11.8%.
The deal includes two tranches, with the investment grade portion valued at 335 basis points above the benchmark rate. Jefferies served as sole structuring agent and bookrunner, according to Bloomberg.
Bitcoin’s volatility has been the focus of attention, with the largest cryptocurrency by market capitalization dropping 50% over the past four months to as low as $60,000.
Crypto Firm Ledn First Sells Bitcoin-Backed Bonds on ABS Market
>First transaction of this type in asset-backed debt
> Guaranteed by a pool of 5,400 Bitcoin-backed loans that consumers took out from Ledn at a weighted average rate of 11.8%
>Investment Grade tranche valued at +335bps pic.twitter.com/Rx3944uGys– Matthew Sigel, recovering the DWI (@matthew_sigel) February 18, 2026
The structure uses automated collateral liquidation when thresholds are exceeded, a feature designed to protect investors in the event of a sharp market decline.
