Coinbase and Ledn Strengthen Crypto Lending Push Despite Market Slump

Digital asset lender Ledn completed what it described as the first-ever transaction of its kind in the asset-backed debt market, selling $188 million in securitized bonds backed by Bitcoin. The deal consists of two bonds, one portion rated investment-grade and priced at a spread of 335 basis points above the benchmark.

The bonds are secured by a pledge of 4,078.87 Bitcoin, with a fair market value of about $356.9 million; the loans carry a weighted average interest rate of 11.8%. Jefferies Financial Group Inc. served as lead manager, structuring agent and initial purchaser. Ledn outlined its liquidation engine as an algorithmic trading program that sources prices on multiple exchanges and through trading partners.

Over seven years it has liquidated BTC collateral to repay 7,493 loans, with an average loan-to-value (LTV) at liquidation of 80.32% and a maximum of 84.66%, and it says it has never experienced a loss.

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