Ledn, the company that provides consumer loans collateralized by Bitcoin, has sold $188 million in securitized bonds to investors.
The deal, Ledn Issuer Trust 2026-1, is the asset-backed securities (ABS) industry’s first rated transaction backed by Bitcoin-collateralized loans, according to a spokesperson for the company.
More than two times oversubscribed, the deal issued notes through class A and B tranches, placing $160 million and $28 million to noteholders, respectively.
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The investment-grade tranche priced at 335 basis points over the benchmark, the company said.
Ledn Issuer Trust will release capital for Ledn to launch tiered pricing for its loan products, allowing it to offer borrowers rates of 9.99% for loans $2 million or greater, down from 11.9%.
Ledn Isser’s collateral pool consists of 5,441 fixed-rate balloon loans, extended to 2,914 U.S. borrowers, according to the company. Its website notes that borrowers pay an annual percentage rate of 11.9%.
Credit protections include overcollateralization, liquidation triggers and a liquidity reserve representing 0.5% of the outstanding note balance at closing, the company said.
One of the strongest protections addresses the Bitcoin itself. Borrowers’ pledged currency remains held in custody and ring-fenced, meaning that the collateral cannot be re-used by any party involved in the securitization to generate yield or secure any other type of financing, the company said.
At the cutoff date, the loan pool had a total outstanding principal balance of about $199.1 million, backed by 4,078.87 Bitcoin that had a fair market value of $256.9 million.