According to Bloomberg, cryptocurrency lending firm Ledn Inc. has issued asset-backed securities (ABS) collateralized by Bitcoin, totaling $188 million (approximately 2.6 trillion Korean won). Bloomberg states that this is the first transaction involving Bitcoin-backed bonds in the ABS market.
Structure and Issuance Conditions
Citing multiple sources familiar with the matter, Bloomberg reports that the transaction consists of two bond tiers, with the investment-grade tier priced at a spread of 335 basis points over the benchmark rate. Jefferies Financial Group Inc. served as the exclusive structuring agent and bookrunner.
Collateral Asset Composition
According to a S&P Global Ratings report cited by Bloomberg, the bonds are backed by a pool of over 5,400 loans where consumers borrowed from Ledn using their Bitcoin as collateral. The weighted average interest rate on these loans is 11.8% annually.
Volatility Risk and Safety Measures
The sharp volatility of Bitcoin prices is a key risk factor for this transaction. Bloomberg reports that S&P states Ledn has a structure that allows for the immediate sale of collateralized Bitcoin through an algorithm-driven automatic liquidation system in the event of loan default, using the proceeds to repay the loan. This mechanism helps ABS investors to some extent mitigate the risk of price crashes.
Bloomberg reports that earlier this month, when Bitcoin plummeted about 50% from its October high, Ledn reportedly liquidated a significant portion of loans in its securitized portfolio. Bloomberg adds that although Bitcoin has rebounded slightly, it is still down about 46% from the October high, with the current price around $66,484.
Bloomberg states that this transaction marks the official expansion of securitization technology from traditional financial markets into the cryptocurrency lending sector. It remains to be seen whether similar structured cryptocurrency-backed ABS issuances will continue in the future.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
American Bitcoin Holdings Rise to 6899 BTC, Surpassing Galaxy to Rank 16th
Eric Trump announced that his American Bitcoin company's Bitcoin holdings have increased to approximately 6,899 BTC, surpassing Galaxy Digital to become the 16th largest publicly listed Bitcoin company globally. The company relies primarily on industrial-scale mining rather than market purchases, and recently acquired 11,298 mining machines to expand production capacity. The Trump family's combined Bitcoin holdings exceed 16,000 BTC, demonstrating their significance in the cryptocurrency sector.
MarketWhisper17m ago
A certain ancient whale sold 1000 BTC again 7 hours ago, worth approximately $71.57 million.
Gate News Alert: On March 19, according to on-chain analyst Remnants' monitoring, an ancient whale who accumulated 5000 BTC 13 years ago sold another 1000 BTC 7 hours ago, worth approximately $71.57 million.
GateNews1h ago
Bitcoin slips below $71K as on-chain data signals bullish momentum
Bitcoin retraced about 7% after briefly touching the $76,000 mark earlier in the week, as a confluence of macro headlines trimmed risk appetite. A jump in oil prices tied to Middle East tensions and a hotter-than-expected producer price index added headwinds for risk assets, including equities.
CryptoBreaking1h ago
BlackRock withdrew 2267 BTC and 5041 ETH from a certain CEX over the past 9 hours
Gate News reported that on March 19, according to Onchain Lens monitoring, BlackRock withdrew 2,267 BTC (valued at $161.82 million) and 5,041 ETH (valued at $11.02 million) from a certain CEX in the past 9 hours. Additionally, over the past 3 consecutive days, BlackRock has cumulatively withdrawn 8,435 BTC with a total value of $618.05 million.
GateNews1h ago
Gods Gathering in Crypto Winter: When Faith Becomes the Final Leverage
# From: Vanity Fair
**Compiled by:** Moni, Odaily Planet Daily
"I really can't hold on anymore."
In early February this year, the Signal inbox of a major cryptocurrency market maker was flooded with dozens of messages like this. The crypto market plummeted another 15%—within just a few days, $400 billion in market value vanished into thin air. Over the previous four months, dragged down by Bitcoin, the total cryptocurrency market value crashed nearly 50%, with Ethereum and Solana both declining close to 60%. This collapse erased approximately $2 trillion in value, dragging the industry into a bear market, which the crypto community refers to as a "crypto winter"—a somewhat nerdy metaphor paying homage to that unsettling line from *Game of Thrones*: "Winter is coming."
Project founders were thrown into a panic...
PANews1h ago
