Ledn raises $188M in first Bitcoin-backed loan securitization: Bloomberg

CoinTelegraph

by Christina Comben

February 19, 2026

AI-Generated Deep Dive Summary

Bitcoin lender Ledn has made a groundbreaking move in the cryptocurrency space by raising $188 million through its first Bitcoin-backed loan securitization. This innovative deal allows investors to access crypto-linked risk without directly holding Bitcoin, marking a significant milestone in the convergence of traditional finance and blockchain technology. The transaction involved packaging thousands of Bitcoin-collateralized loans into asset-backed securities (ABS), creating a new avenue for mainstream investment in cryptocurrency-related assets. The deal was structured through Ledn Issuer Trust 2026-1, which pools together 5,441 short-term, fixed-rate balloon loans extended to 2,914 U.S. borrowers. These loans are secured by 4,078.87 Bitcoin, as detailed in S&P Global Ratings’ preliminary documentation. The offering included two tranches, with the investment-grade portion priced at a spread of approximately 335 basis points over a benchmark rate. This indicates that investors are seeking an additional yield of 3.35 percentage points to hold crypto-linked credit risk compared to conventional consumer ABS. The success of this securitization highlights the growing interest in Bitcoin as a collateral asset for financial products. By tapping into the mainstream ABS market, Ledn has demonstrated that crypto-backed loans can attract institutional investors willing to take on additional risk for higher returns. The structured nature of the deal also provides a layer of security and transparency, making it more accessible to traditional investors who may otherwise be hesitant to engage with cryptocurrency directly. This development is significant for several reasons. First, it validates Bitcoin as a viable collateral asset in mainstream financial markets, signaling broader acceptance of digital assets. Second, it opens up new investment opportunities for institutional players looking to diversify their portfolios with crypto-linked risk without direct exposure to Bitcoin price volatility. Third, the deal sets a precedent for future innovations in crypto-backed lending and securitization, potentially paving the way for similar products in other regions or asset classes. For readers interested in cryptocurrency, this marks a key moment in the industry’s evolution. It underscores the potential for blockchain technology to bridge traditional finance and digital assets, creating new pathways for capital formation and investment. As more institutions explore opportunities like Led

Verticals

cryptoblockchain

Originally published on CoinTelegraph on 2/19/2026