Ledn Sells $188M Bitcoin-Backed Securities

Ledn, a digital asset lending platform, has completed the sale of $188 million in asset-backed securities backed by Bitcoin-collateralized consumer loans, marking the first such transaction to bring crypto lending into mainstream fixed-income markets.

The deal, structured through Ledn Issuer Trust 2026-1, securitizes a pool of 5,441 short-term, fixed-rate balloon loans extended to 2,914 U.S. borrowers. These loans, with a weighted average interest rate of 11.8 percent, are secured by 4,078.87 Bitcoin, valued at approximately $356.9 million during the review process. Investors in the bonds receive payments from the cash flows generated by borrower repayments, rather than direct ownership of the cryptocurrency. The structure includes automated liquidation mechanisms that trigger when loan-to-value ratios exceed 81.4 percent, designed to protect against market downturns. Ledn's historical data shows it has liquidated collateral for 7,493 loans over seven years without incurring losses, with executions averaging under 10 seconds and minimal price slippage.

The issuance comprises two tranches: a senior Class A portion of $160 million and a subordinated Class B portion of $28 million....