Ledn Packages $188 Million of Bitcoin‑Backed Loans into First U.S. Asset‑Backed Securities Deal
February 19 2026
A pioneering transaction saw cryptocurrency‑lending platform Ledn place roughly $188 million of bonds secured by Bitcoin‑collateralised consumer loans into the United States asset‑backed securities (ABS) market. The deal, announced on Wednesday, marks the first time a crypto‑linked loan pool has been securitised through a conventional Wall‑Street conduit.
Deal structure
The securities were issued through Ledn Issuer Trust 2026‑1, which pools 5,441 short‑term, fixed‑rate balloon loans extended to 2,914 U.S. borrowers. Those loans are under‑written against approximately 4,079 BTC held as collateral.
Two distinct tranches were created:
| Tranche | Size | Rating (preliminary) | Position |
|---|---|---|---|
| Class A (senior) | $160 million | BBB‑ (sf) | Investment‑grade |
| Class B (subordinated) | $28 million | B‑ (sf) | Non‑investment‑grade (junk) |
The senior tranche was priced at a spread of about 335 basis points over the relevant benchmark rate, indicating that investors demand an additional 3.35 percentage points of yield to compensate for the crypto‑related credit risk.
Jefferies Financial Group acted as the sole structuring agent and bookrunner, placing the notes with institutional fixed‑income buyers.
Market significance
Analysts see the transaction as a litmus test for Bitcoin’s evolving status as “acceptable collateral” in traditional finance.
- Andre Dragosch, head of research for Bitwise in Europe, argued that the ability to package BTC‑backed loans in a mainstream ABS vehicle signals a broadening acceptance of Bitcoin by banks and rating agencies. He referenced the growing number of large institutions, such as JPMorgan, that now offer Bitcoin‑enabled lending products.
- Jinsol Bok, research lead at Four Pillars, highlighted the on‑chain transparency of Bitcoin collateral. Unlike conventional mortgage pools, the underlying assets can be tracked in real time and liquidated programmatically, a feature that could reduce perceived risk and unlock additional liquidity for lenders.
Both commentators suggest that the market could see a surge in similar structures as the cryptocurrency‑backed lending ecosystem matures.
Investor perspective
Purchasers of the Ledn notes do not receive Bitcoin directly; instead, they assume credit risk tied to the borrowers’ repayment performance and structural risk linked to the securitisation framework. The loans in the pool reportedly maintain modest loan‑to‑value ratios, which analysts say contributes to a historically low default rate for this segment.
The spread over benchmark rates—335 bps for the senior tranche—offers a premium compared with traditional consumer‑loan ABS, reflecting the novelty of the asset class and the additional volatility associated with Bitcoin prices.
About Ledn
Founded in 2018, Ledn claims to have originated more than $9.5 billion in loans across more than 100 jurisdictions. In November 2025, the platform secured a strategic investment from Tether, the issuer of the USDT stablecoin, underscoring its ties to the broader crypto‑finance ecosystem.
Key takeaways
- First crypto‑linked ABS: Ledn’s $188 M issuance is the inaugural Bitcoin‑backed ABS in the U.S. market, showing that crypto assets can be integrated into conventional securitisation channels.
- Yield premium: The senior tranche’s 335 bps spread signals that investors require a higher return for exposure to crypto‑related credit risk versus standard consumer loan ABS.
- Ratings reflect novelty: Preliminary BBB‑ for the senior tranche and B‑ for the subordinated tranche illustrate cautious optimism from rating agencies while acknowledging heightened risk.
- Institutional acceptance: The deal reinforces the narrative that major financial institutions are increasingly comfortable using Bitcoin as collateral, a trend seen in recent bank‑offered BTC loans.
- Potential for scaling: On‑chain transparency and programmable liquidation mechanisms could make future Bitcoin‑backed securitisation more attractive, potentially expanding the market beyond its current size.
The Ledn transaction could be a bellwether for how the broader cryptocurrency lending sector seeks capital and risk‑transfer solutions in the coming years. As regulators, rating agencies, and institutional investors continue to assess crypto collateral, further ABS offerings may emerge, paving the way for a deeper convergence between digital assets and the traditional fixed‑income market.
Source: https://cointelegraph.com/news/ledn-bitcoin-backed-abs-188m-sp-ratings?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
