Ledn, a crypto lending firm, has accomplished the primary asset-backed securities (ABS) deal backed by bitcoin collateral, elevating $188 million for crypto credit score markets.
Asset-backed securities are bonds backed by swimming pools of underlying loans, with buyers receiving funds from the money flows generated by these loans.
Bloomberg reported that the bonds are secured by a pool of greater than 5,400 shopper loans issued by the agency, every backed by debtors’ bitcoin holdings. The loans carry a weighted common rate of interest of 11.8%.
The deal consists of two tranches, with the investment-grade portion priced at 335 foundation factors over the benchmark price. Jefferies served as sole structuring agent and bookrunner, in keeping with Bloomberg.
Bitcoin’s volatility has been in focus, with the most important cryptocurrency by market capitalization falling as a lot as 50% over the previous 4 months to as little as $60,000.
Crypto agency Ledn sells Bitcoin-backed bonds in ABS market first
>First ever deal of its sort in asset-backed debt
>Secured by pool of 5,400 Bitcoin-collateralized loans that customers took from Ledn at weighted avg price of 11.8%
>Funding grade tranche priced at +335bps pic.twitter.com/Rx3944uGys— matthew sigel, recovering CFA (@matthew_sigel) February 18, 2026
The construction employs automated collateral liquidation when thresholds are breached, a function designed to guard buyers throughout sharp market declines.