The post Ledn Closes $188M Bitcoin-Backed ABS Deal, Bringing BTC Into Mainstream Bond Markets appeared on BitcoinEthereumNews.com.

Bitcoin Crypto lending platform Ledn has completed the first-ever asset-backed securities (ABS) transaction backed by Bitcoin-collateralized consumer loans, raising $188 million from institutional investors. The landmark deal, structured through Ledn Issuer Trust 2026-1, represents a historic bridge between retail crypto lending and traditional fixed-income markets. Key Takeaways Ledn raised $188 million through the first-ever Bitcoin-backed ABS transaction. The senior tranche received a preliminary BBB- (sf) rating from S&P, entering investment-grade territory. The structure held firm despite Bitcoin’s recent volatility, with zero principal losses. The deal validates BTC as institutional-grade collateral in mainstream credit markets. The securitization arrives during a volatile period for Bitcoin, which recently dipped toward $60,000 before stabilizing near $67,000. Despite the drawdown triggering liquidations on approximately 25% of the underlying loans as loan-to-value (LTV) thresholds were breached, the structure experienced zero principal losses and no rating downgrades, reinforcing the resilience of Bitcoin-backed credit under stress conditions. Deal Structure and Key Metrics The $188 million issuance was divided into two tranches: Class A (Senior Notes): $160 million, preliminary BBB- (sf) rating, lowest investment-grade tier. Class B (Subordinated Notes): $28 million, preliminary B- (sf) rating, non-investment-grade. The senior tranche priced at approximately 335 basis points over benchmark rates, implying an all-in yield of around 3.35%. The pricing reflects a crypto-specific risk premium while remaining competitive within structured credit markets. LATEST: 💰 Ledn sold $188 million in Bitcoin-backed bonds into the mainstream asset-backed securities market in a first-of-its-kind deal, with Jefferies acting as sole structuring agent. pic.twitter.com/o1zOnyweMz — CoinMarketCap (@CoinMarketCap) February 19, 2026 The underlying collateral consists of 4,078.87 BTC, valued at approximately $356.9 million at S&P’s review cutoff. At current Bitcoin levels near $67,000, the collateral pool is worth roughly $273 million. Importantly, the loans are overcollateralized, with a weighted-average LTV of 55.78%. The securitized pool includes 5,441 short-term…

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Filed under: News - @ February 20, 2026 7:19 am