Ledn completes first Bitcoin-backed ABS issuance, raising $188 million

PANews February 19 News, according to CoinDesk, the crypto lending company Ledn announced the completion of its first asset-backed securities (ABS) transaction collateralized by Bitcoin, with a financing scale of $188 million, setting a precedent for the crypto lending market. The report states that this transaction packaged and issued bonds backed by over 5,400 Bitcoin-backed personal loans, with an average weighted interest rate of 11.8%. The ABS uses the underlying loan cash flows as the repayment source, and investors receive corresponding returns through the bonds.

The issuance is divided into two tranches, with the investment-grade portion priced at 335 basis points above the benchmark rate. Jefferies served as the exclusive structuring agent and bookrunner for this deal. Given Bitcoin’s significant price volatility (with a maximum drawdown of about 50% in the past four months, dropping to $60,000), the structure incorporates an automatic collateral liquidation mechanism that enforces forced liquidation when risk thresholds are reached, protecting investors during periods of market turbulence. Industry experts believe that this issuance marks the first time Bitcoin-backed loans have entered the traditional asset securitization market framework, providing a new pathway for the integration of crypto credit assets with mainstream capital markets.