Markets
What to know:
- Ledn sold $188m of bonds backed by 5,400 bitcoin collateralized consumer loans, with an investment grade tranche priced at +335 basis points.
- Automated liquidation of bitcoin collateral helped shield asset backed security investors even as the token fell.
In a world where the sun sets on traditional finance, Ledn stepped into the spotlight, selling bonds as if they were the last seeds of a dying crop, all backed by the volatile glow of bitcoin. A surefire way to make money-or lose it all, depending on your luck and the whims of the market.
Asset-backed securities, those old reliables of the financial world, now find themselves tethered to a digital colossus. Investors, ever the hopeful souls, pour their hopes into loans secured by the shimmering promise of cryptocurrency, while the rest of us watch, wondering if we’ve stumbled into a dream or a nightmare.
Bloomberg reported that the bonds are secured by a pool of more than 5,400 consumer loans issued by the firm, each backed by borrowers’ bitcoin holdings. The loans carry a weighted average interest rate of 11.8%-a number that sounds like a promise, but might just be a warning.
The deal includes two tranches, with the investment-grade portion priced at 335 basis points over the benchmark rate. Jefferies, ever the gatekeeper of Wall Street’s secrets, served as sole structuring agent and bookrunner. One can only imagine the hushed conversations and calculated risks behind closed doors.
Bitcoin’s volatility has been in focus, with the largest cryptocurrency by market capitalization falling as much as 50% over the past four months to as low as $60,000. A rollercoaster, perhaps, but one that leaves passengers questioning if they’ve signed up for a thrill or a free fall.
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– matthew sigel, recovering CFA (@matthew_sigel) February 18, 2026
The structure employs automated collateral liquidation when thresholds are breached, a feature designed to protect investors during sharp market declines. But let’s be honest-when the market turns, even the most well-crafted safeguards feel like a bandage on a broken leg.
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2026-02-19 11:20