Ledn, a crypto lending company, has completed the first asset-backed securities (ABS) deal backed by bitcoin collateral, raising $188 million for crypto credit markets.
Asset-backed securities are bonds that are backed by pools of underlying loans, where investors receive payments from the cash flows generated by those loans.
Bloomberg reported that the bonds are secured by a pool of more than 5,400 consumer loans issued by the firm, each backed by borrowers’ bitcoin holdings. The loans have a weighted average interest rate of 11.8%.
The deal includes two tranches, where the investment grade is priced at 335 basis points above the benchmark rate. Jefferies acted as the sole structuring agent and bookrunner, according to Bloomberg.
Bitcoin’s volatility has been in focus, with the largest cryptocurrency by market capitalization falling as much as 50% over the past four months to as low as $60,000.
Crypto firm Ledn first sells Bitcoin-backed bonds on the ABS market
>First ever trade of its kind in asset-backed debt
>Secured by a pool of 5,400 Bitcoin-secured loans that consumers took out from Ledn at a weighted average interest rate of 11.8%
>Investment grade tranche priced at +335bps pic.twitter.com/Rx3944uGys— matthew sigel, recovering CFA (@matthew_sigel) 18 February 2026
The structure employs automated collateralization when thresholds are exceeded, a feature designed to protect investors during sharp market declines.
