Digital asset lending company Ledn has completed the first-ever transaction of its kind in the asset-backed debt market, selling $188 million in securitized bonds backed by Bitcoin (BTC).
This development emerges as the lending market confronts a volatile environment. Active loans have fallen to around $30 billion, and liquidation risks are rising with persistent price declines.
Bloomberg, citing sources familiar with the matter, reported that the deal consists of two bonds. One portion, rated investment-grade, was priced at a spread of 335 basis points above the benchmark rate.
According to a report from S&P Global Ratings, the bonds are secured by a pledge of 4,078.87 Bitcoin. The fair market value stands at approximately $356.9 million.
The loans carry a weighted average interest rate of 11.8%. Jefferies Financial Group Inc. served as the lead manager, structuring agent, and initial purchaser.
“Ledn’s liquidation engine is an algorithmic trading program that sources prices on multiple exchanges and/or is available through multiple trading partners. Ledn has successfully liquidated BTC collateral to repay 7,493 loans in its seven-year history, with an average LTV at liquidation of 80.32%, a maximum LTV at liquidation of 84.66%, and has never experienced a loss. On a WA basis, liquidation upon an LTV EOD has taken under 10 seconds, with minimal “price slippage” in execution,” the report reads.
Beyond Ledn, Coinbase is expanding its footprint in crypto-backed lending. In a recent update, the exchange said users can borrow up to $100,000 in USDC, the stablecoin issued by Circle, by pledging XRP (XRP), Cardano (ADA), Dogecoin (DOGE), or Litecoin (LTC) as collateral through the decentralized finance protocol Morpho.
The offering is available across the US, with the exception of New York, according to the company.
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This comes at a pivotal moment for the crypto lending sector, which has contracted sharply amid broader market weakness. Data from TokenTerminal showed that as of February 2026, total active loans across lending protocols stand at roughly $30 billion, down 36% from the September peak of $46.96 billion.
The decline coincides with a sustained downtrend in the crypto market since October, which likely amplified the contraction. Falling asset prices reduce the dollar value of posted collateral, tightening borrowing capacity and contributing to liquidations or voluntary deleveraging.
