Crypto lending firm Ledn Inc. has raised $188 million through a landmark Bitcoin-backed bond sale, bringing BTC-collateralized loans into the mainstream asset-backed securities market for the first time.
The deal, structured as Ledn Issuer Trust 2026-1, bundles thousands of short-term, fixed-rate consumer loans secured by Bitcoin into tradable bonds. Jefferies Financial Group served as structuring agent and bookrunner, helping connect traditional fixed-income investors with this new type of crypto-linked credit product.
Inside the Bitcoin-Backed Securitization
The transaction includes roughly $160 million in senior Class A notes. These notes were priced at about 335 basis points above a benchmark rate, reflecting strong demand for higher-yielding structured products.
S&P Global Ratings assigned preliminary ratings to the offering:
- Class A senior notes: BBB- (sf), investment-grade
- Class B subordinated notes: B- (sf)
- Backed by thousands of U.S. Bitcoin-collateralized loans
- Collateral maintained at roughly 2x the bond value
The investment-grade rating for the senior tranche marks a milestone. It signals growing institutional acceptance of Bitcoin as structured credit collateral, even though risks remain higher than traditional ABS products.
Volatility Puts Structure to the Test
Shortly after issuance, the bond faced a real-world stress test. Bitcoin’s price dropped about 27 percent from its mid-January peak. That decline triggered forced liquidations across a portion of the underlying collateral.
As a result, the trust adjusted its mix of loans and cash reserves. This episode highlights both the opportunity and risk of crypto-backed securities. While investors can gain Bitcoin-related exposure without holding BTC directly, price swings can quickly impact collateral dynamics.
Industry analysts say this transaction could open the door for more crypto credit products in capital markets. However, they also stress the importance of strict risk management and overcollateralization.
Ledn’s $188 million securitization shows how digital assets continue to merge with traditional finance. As institutional appetite for crypto exposure grows, 2026 may bring more Bitcoin-backed bonds to the structured credit market.
