Ledn Completes First Bitcoin-Collateralized ABS Offering, Raising $188M

PANews, February 19: According to CoinDesk, crypto lending company Ledn has announced the completion of its first asset-backed security (ABS) transaction backed by Bitcoin as collateral, raising $188 million and setting a precedent in the crypto credit market. The transaction bundles over 5,400 individual loans secured by Bitcoin holdings into bonds, with a weighted average loan interest rate of 11.8%. The ABS is serviced by the cash flows generated from the underlying loans, with investors receiving returns through bond holdings. The issuance is structured into two tranches, with the investment-grade tranche priced at 335 basis points above the benchmark rate. Jefferies served as the sole structuring advisor and bookrunner for the transaction. Given Bitcoin’s high price volatility—its maximum drawdown over the past four months reached approximately 50%, dipping to $60,000—the structure includes an automated collateral liquidation mechanism that triggers forced liquidation upon reaching predefined risk thresholds, thereby protecting investors during periods of extreme market volatility. Industry experts view this issuance as the first time Bitcoin-backed loans have entered the traditional asset securitization framework, offering a new pathway for integrating crypto credit assets into mainstream capital markets.