Ledn Closes $188M Bitcoin-Backed Bond Deal – Is Crypto Credit score Again From the Lifeless?

Ledn simply pulled off one thing large.

The corporate closed a $188M sale of Bitcoin backed bonds. It’s the first time institutional type asset backed securities have been constructed from client crypto loans.

A part of the deal contains funding grade notes priced at 335 foundation factors over the benchmark price. That places it firmly in conventional finance place.

The Deal: Ledn bought $188 million in bonds secured by over 4,000 BTC, bridging retail lending with capital markets.

The Score: S&P International rated the vast majority of the notes BBB-, citing volatility dangers regardless of important overcollateralization.

The Participant: Funding banking heavyweight Jefferies Monetary Group acted as the only structuring agent and bookrunner.

Is This a Turning Level for Crypto Credit score?

After BlockFi and Celsius collapsed in 2022, belief in crypto lending was destroyed. Establishments backed off. Ledn closing a $188M deal now exhibits that urge for food for regulated, clear yield is coming again.

Large cash desires construction.

Crypto agency Ledn sells Bitcoin-backed bonds in ABS market first
>First ever deal of its type in asset-backed debt
>Secured by pool of 5,400 Bitcoin-collateralized loans that buyers took from Ledn at weighted avg price of 11.8%
>Funding grade tranche priced at +335bps pic.twitter.com/Rx3944uGys

— matthew sigel, recovering CFA (@matthew_sigel) February 18, 2026

Sovereign funds are already stacking Bitcoin. Now companies like Ledn are packaging crypto loans into conventional securities. That makes crypto credit score look much more acquainted to Wall Avenue.

Since 2018, Ledn has originated billions in loans. And it’s clearly positioning itself because the cautious participant that survived the mess, not the one which triggered it.

Breaking Down the Bond Mechanics

The bonds are backed by 4,078.87 BTC. That stash was value about $356.9M when S&P reviewed it. Stable collateral on paper.

S&P gave many of the deal a BBB- ranking. Not unhealthy. However their stress check assumed a brutal 79% default price on the “A” degree. Even with funding grade pricing on the senior notes, Bitcoin volatility retains the ranking grounded.

Jefferies ran the books, which brings actual Wall Avenue weight to the desk. Structurally, the deal is tight. A 5% liquidity reserve. Automated liquidations kick in beneath 81.4% LTV.

That form of self-discipline is uncommon in crypto lending.

Ledn simply bought $188 million in $BTC-backed bonds. Jefferies structured it. Consists of an investment-grade tranche. S&P printed a report on the deal. First of its type.
Similar securitization infrastructure used for mortgages, auto loans, and bank cards. Besides the collateral is… pic.twitter.com/7kPBYfpLLr

— Fund Breakdown (@FundBreakdown) February 19, 2026

Nonetheless, volatility doesn’t disappear. When Bitcoin dipped to $60,000, Ledn needed to liquidate some loans to guard buffers. The unique 2x overcollateralization shrank barely.

That is structured. Skilled. However it nonetheless rides on Bitcoin.

The success of this bond sale proves conventional finance is keen to interact with crypto-backed merchandise if the construction mimics acquainted asset-backed securities (ABS). It marks a convergence of crypto property and conventional monetary plumbing.

Uncover: Listed below are the crypto more likely to explode!

The publish Ledn Closes $188M Bitcoin-Backed Bond Deal – Is Crypto Credit score Again From the Lifeless? appeared first on Cryptonews.

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