Ledn, a crypto lending company, completed the first asset-backed securities (ABS) deal backed by bitcoin collateral, raising $188 million for the crypto credit markets.
Asset-backed securities are bonds backed by pools of underlying loans, and investors receive payments from 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 have a weighted average interest rate of 11.8%.
The deal includes two tranches, with the investment grade portion priced at 335 basis points above the benchmark rate. Jefferies acted as sole structuring and placement agent, according to Bloomberg.
Bitcoin’s volatility has been in the spotlight, with the largest cryptocurrency by market capitalization falling as much as 50% in the past four months to a low of $60,000.
Crypto Firm Ledn First Sells Bitcoin-Backed Bonds on ABS Market
>First transaction of its kind in asset-backed debt
>Guaranteed by a pool of 5,400 Bitcoin-secured loans that consumers took out from Ledn at a weighted average rate of 11.8%
>Investment grade tranche priced at +335 basis points pic.twitter.com/Rx3944uGys— matthew sigel, recovering CFA (@matthew_sigel) February 18, 2026
The structure employs automated collateral liquidation when thresholds are exceeded, a feature designed to protect investors during sharp market declines.
