Ledn Sells $188M Bitcoin-Backed Bonds in First-of-Its-Kind Deal

Crypto lender Ledn Inc. executed a landmark deal by selling $188 million in securitized bonds backed by Bitcoin-linked consumer loans, marking a first in the asset-backed debt market. The transaction involved two tranches, one of which achieved an investment-grade rating and priced at 335 basis points over the benchmark rate, with Jefferies Financial Group acting as the structuring agent. The bonds are secured by over 5,400 loans where Bitcoin collateralized the debt, carrying a weighted average interest rate of 11.8%. S&P Global Ratings noted that Bitcoin's price volatility is a key risk, but structural mitigants like Ledn's automated liquidation engine—which successfully handled prior sharp declines without principal loss—offer protection. S&P's analysis focused on default behavior and recovery rates, applying conservative stress scenarios to the rated notes.

(Source：Bitcoin Magazine)