Crypto lender Ledn issues $188 million in Bitcoin-backed bonds

YM Lee

Summary

Ledn said it issued $188 million of Bitcoin-backed asset-backed securities.
The bonds are secured by 4,078.87 Bitcoin and were priced with an BBB- rating and a 335-basis-point spread over the benchmark rate, it said.
Ledn has originated billions of dollars in loans through its Bitcoin-collateralized lending service, and said last year’s Tether investment helped support expanding demand for Bitcoin-backed loans.

Crypto lending firm Ledn has issued asset-backed securities collateralized by Bitcoin.

According to a Bloomberg report on the 18th (local time), Ledn sold a total of $188 million of Bitcoin-backed bonds. The deal comprised two tranches, with the investment-grade portion priced at a spread of 335 basis points over the benchmark rate.

The bonds were secured by a total of 4,078.87 Bitcoin. According to S&P Global, the fair value of the collateral Bitcoin is about $356.9 million. In a report dated Feb. 9, S&P assigned a BBB- rating to most of the issuance.

Ledn has offered services that allow users to take out loans by pledging Bitcoin as collateral without selling it. The firm is said to have originated billions of dollars in loans since its founding. In November last year, stablecoin issuer Tether invested in Ledn, supporting efforts to expand demand for Bitcoin-collateralized lending.

Jefferies Financial Group served as structurer and bookrunner for the offering.

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