Crypto lending platform Ledn has completed a landmark $188 million securitization of Bitcoin-backed consumer loans, marking one of the first times crypto-collateralized credit has been packaged into the mainstream asset-backed securities (ABS) market, according to a Bloomberg report citing people familiar with the deal.
Crypto firm Ledn sells Bitcoin-backed bonds in ABS market first
>First ever deal of its kind in asset-backed debt
>Secured by pool of 5,400 Bitcoin-collateralized loans that consumers took from Ledn at weighted avg rate of 11.8%
>Investment grade tranche priced at +335bps pic.twitter.com/Rx3944uGys— matthew sigel, recovering CFA (@matthew_sigel) February 18, 2026
The transaction was executed through Ledn Issuer Trust 2026-1 and is backed by 4,078.87 Bitcoin pledged as collateral. The securitized pool comprises 5,441 short-term, fixed-rate balloon loans extended to 2,914 US borrowers according to S&P Global Ratings’ preliminary documentation on February 9.
In a first-of-its-kind structure, the investment-grade tranche reportedly priced at a spread of around 335 basis points over a benchmark rate, meaning investors demanded an additional 3.35 percentage points in yield to compensate for crypto-linked credit risk compared with traditional consumer ABS.
Structure, ratings and Wall Street backing
Balloon loans typically feature smaller periodic payments followed by a large lump-sum repayment at maturity, keeping early payments lower but concentrating principal risk at the end of the term.
S&P Global Ratings assigned preliminary BBB- (sf) and B- (sf) ratings to the $160 million senior Class A notes and $28 million subordinated Class B notes, respectively. BBB- represents the lowest rung of investment-grade debt, while B- falls firmly into non-investment-grade territory, reflecting materially higher default risk.
Jefferies Financial Group acted as the sole structuring agent and bookrunner, bridging institutional fixed-income investors with crypto-linked exposure.
Bitcoin’s growing role as collateral
Industry analysts say the deal signals increasing institutional comfort with Bitcoin as collateral. K33 launched a crypto-backed lending service in the Nordic region, allowing clients to borrow USDC against Bitcoin and Ether collateral. The initiative leverages K33’s corporate Bitcoin treasury to generate yield and provide liquidity without requiring clients to sell their digital assets.
Investors in the notes do not hold Bitcoin directly but assume exposure to a pool of BTC-secured loans, with returns dependent on borrower repayment and collateral management.
Founded in 2018, Ledn says it has originated over $9.5 billion in loans across more than 100 countries. The firm also received a strategic investment from Tether, issuer of USDt, in November 2025.
Enjoyed this piece? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
