The lending company has launched bonds backed by bitcoin-linked loans.
According to Bloomberg, Ledn Inc. has completed the sale of $188 million in bonds secured by bitcoin-related loans. The deal marks a record in the digital-asset-backed debt market.
The issuance is divided into two bond tranches, one of which is rated investment-grade and priced with a spread of 335 basis points over the reference rate, according to sources close to the transaction. Jefferies Financial Group Inc. acted as sole structuring agent and bookrunner.
The collateral includes over 5,400 consumer loans backed by bitcoin, with a weighted average interest rate of 11.8%. S&P Global Ratings evaluated the deal based on borrower behavior, loan recovery in case of liquidation, and concentration risks.
To manage bitcoin price volatility, Ledn uses an algorithmic liquidation system that automatically sells the bitcoin collateral in case of default, allocating the proceeds to loan repayment.
S&P highlighted structural mitigations such as overcollateralization, early amortization triggers, a liquidity reserve equal to 5% of the bond balance, and the proven track record of the automated liquidation system, which over seven years has managed 7,493 loans without any capital loss. Ledn plans to request cash payments for renewals starting in 2027, gradually reducing liquidity pressure.
