Ledn raises $188m with first BTC backed bond sale in asset backed market
Crypto lender Ledn successfully raised $188 million through the first asset-backed securities deal secured by bitcoin collateralized consumer loans.Summary
Crypto lending company Ledn has finalized the first asset-backed securities (ABS) transaction of its kind, raising $188 million. This deal is secured by a pool of over 5,400 consumer loans issued by Ledn, where each loan is collateralized by the borrower's bitcoin holdings. The loans carry a weighted average interest rate of 11.8%. The offering included two tranches, with the investment-grade portion priced at 335 basis points over the benchmark rate. Jefferies acted as the sole structuring agent and bookrunner. A key feature of the structure is automated liquidation of the bitcoin collateral if predefined thresholds are breached, a mechanism intended to safeguard ABS investors against significant market downturns, such as the recent 50% drop in Bitcoin's price.
(Source：CoinDesk)