Ledn issues $188M Bitcoin-backed securitized bond

Ledn issued a $188M securitized bond backed by Bitcoin-collateralized loans, featuring two tranches and an investment-grade rating. The deal highlights crypto's growing role in mainstream finance.

Ledn has issued a $188 million securitized bond backed entirely by loans collateralized with Bitcoin, marking a milestone in the asset-backed debt market. The bond is structured in two tranches, with one achieving an investment-grade rating and priced at 335 basis points above the benchmark rate. Jefferies Financial Group acted as the sole structuring agent and distributor, overseeing a deal based on over 5,400 Bitcoin-backed loans originated by Ledn, with an average interest rate of 11.8%. The main risk for this bond is Bitcoin’s price volatility, which could impact borrowers’ ability to repay. S&P Global Ratings noted that investors are partially protected from defaults, as Ledn uses an algorithm-driven approach to liquidate Bitcoin collateral if certain thresholds are breached. This innovative issuance bridges digital assets and institutional finance, highlighting new opportunities and the need for strong risk management.