Ledn has completed a $188 million securitization of Bitcoin-backed loans, marking what a a first for the asset-backed securities market. According to Bloomberg, the crypto lending firm sold bonds backed by loans collateralized with Bitcoin, bringing a structured finance model into the digital asset space.
The transaction packages Bitcoin-backed loans into securities that can be sold to investors, effectively linking traditional capital markets with crypto-collateralized credit. The deal received a rating from S&P Global Ratings, signaling an added layer of scrutiny and formal assessment. Market participants view the structure as a milestone for institutional adoption, as it translates crypto lending activity into a format familiar to fixed-income investors. Borrowers whose loans underpin the bonds remain exposed to Bitcoin price movements, while investors gain exposure to a securitized product tied to crypto-backed credit performance.
With the transaction now closed, attention turns to how the notes perform and whether similar issuances follow. Observers will be watching for additional ratings actions, secondary market activity, and whether other lenders replicate the model in coming months.
Source: Bloomberg.
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