Cryptocurrency lender Ledn Inc. has sold $188 million in securitized bonds backed by Bitcoin-related loans, marking its first transaction in the asset-backed debt market.
The deal includes two bond tranches, the people said. bloomberg, One of the stocks had an investment grade rating and had a spread of 335 basis points from the benchmark rate, according to people familiar with the matter. Jefferies Financial Group Inc. acted as sole structuring agent and bookrunner.
The bonds were secured by a pool of more than 5,400 consumer loans issued by Ledn, with borrowers using their Bitcoin holdings as collateral, according to a report from S&P Global Ratings.
The weighted average interest rate on the loan is 11.8%.
Bitcoin price volatility remains a core risk. If prices plummet, loans related to cryptocurrencies could be underwater.
Just in: Cryptocurrency finance company Ledn sells $188 million in Bitcoin-backed securitized bonds, marking the first-ever BTC transaction in the asset-backed bond market — Bloomberg
— Bitcoin Magazine (@BitcoinMagazine) February 18, 2026
S&P’s Ledn Bitcoin Bond Rating
S&P said investors may be partially protected because Ledn uses algorithmic liquidation to sell Bitcoin collateral when a default trigger is reached and use the proceeds to repay outstanding loans.
The report noted that Bitcoin’s sharp decline in early February forced Reddon to liquidate a “substantial portion” of the loan scheduled for the deal. S&P said that while maintaining the total collateral package at $200 million, all liquidations were executed below the 81.4% LTV threshold and the composition of the portfolio shifted towards fewer loans and more cash in the funding account.
S&P’s analysis focused on borrower default behavior, recovery rates during liquidation, and concentration risk. The agency said margin-driven defaults are the most severe stress scenario because liquidations occur at a time when Bitcoin prices are falling, and delays in execution can dilute or destabilize the most important markets.
S&P said traditional consumer loan performance metrics have limitations because Ledn underwrites loans primarily based on Bitcoin collateral rather than the borrower’s credit profile.
At the ‘A’ stress level, the authorities applied a conservative 100% default assumption and modeled stresses on the rated notes that included a default rate of 79% and a recovery rate of 68% for the BBB Class A tranche.
S&P highlighted structural mitigation measures such as overcollateralization, early amortization triggers, a liquidity reserve funded by 5% of outstanding notes, and Redon’s automated liquidation engine, which has successfully liquidated 7,493 loans without loss of principal over seven years.
Redon plans to require cash interest payments on renewal starting in 2027, which S&P said will reduce liquidity stress over time.
Bitcoin has since recovered modestly, but is still about 46% below its October high and currently trades around $66,000.
This article, “Ledn Sells $188M Bitcoin-Backed Bonds in First-of-Its Kind Deal” first appeared in Bitcoin Magazine and was written by Micah Zimmerman.
