Crypto lending platform Ledn has completed a $188 million transaction by securitizing Bitcoin-collateralized consumer loans in the traditional asset-backed securities (ABS) market for the first time. This development is seen as an important step in integrating crypto assets into mainstream financial products.
Structure of the Transaction and Collateral Details
Ledn Issuer Trust 2026-1 is behind the transaction, and a total of 4,078.87 Bitcoins were pledged as collateral for the loan portfolio. The ABS structure in question consists of 5,441 short-term, fixed-rate balloon loans to 2,914 US borrowers. In these loans, a lump sum payment is made at the end of the maturity; While early payments remain low, the risk intensifies at maturity.
Credit Score and Positioning in the Markets
S&P Global Ratings assigned a preliminary rating of BBB- (sf) to senior class A bonds and B- (sf) to class B bonds. BBB- is at the bottom rung of investment grade, while B- indicates a higher risk category. Investors have priced in the potential risks associated with crypto-secured loans, demanding additional returns compared to traditional ABS products.
Jefferies Financial Group acted as sole arranger and underwriter on this issuance, providing institutional fixed income investors with access to crypto-related income streams.
Institutional Approach to Bitcoin and Crypto Assets
Experts believe that this transaction is an indication that institutional investors have begun to accept Bitcoin as collateral. Recently, loan products based on corporate Bitcoin treasuries have been launched in different regions. For example, in northern countries, a company called K33 launched a Bitcoin and Ether secured loan service; Users had the opportunity to borrow in USDC without selling their digital assets. Such applications diversify the ways to create liquidity with crypto assets on balance sheets.
In the securities issued by Ledn, investors do not directly own Bitcoin, but receive returns based on the collateral of the loans. This structure offers a model in which returns are largely dependent on borrower payments and collateral management performance.
Ledn, which started its crypto loan activities in 2018, announces that it has provided over 9.5 billion dollars in loans in more than 100 countries to date. The company also received strategic investment from stablecoin Tether towards the end of 2025.
Following this development, it is evaluated that Bitcoin-backed securitization transactions can build new bridges between crypto and traditional finance. It is thought that the process may encourage other new products in the ABS market.
