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Ledn raises $188m with first bitcoin backed bond sale in asset backed market
Crypto lender packages more than 5,400 bitcoin collateralized loans into first asset backed securities transaction of its kind.
Feb 19, 2026, 7:25 a.m.
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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.
Ledn, a crypto lending company, has completed the first asset-backed securities (ABS) deal backed by bitcoin collateral, raising $188 million for crypto credit markets.
Asset-backed securities are bonds backed by pools of underlying loans, with investors receiving payments from the cash flows generated by those loans.
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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%.
The deal includes two tranches, with the investment-grade portion priced at 335 basis points over the benchmark rate. Jefferies served as sole structuring agent and bookrunner, according to Bloomberg.
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.
Crypto firm Ledn sells Bitcoin-backed bonds in ABS market first
— matthew sigel, recovering CFA (@matthew_sigel) February 18, 2026
>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
The structure employs automated collateral liquidation when thresholds are breached, a feature designed to protect investors during sharp market declines.
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