Crypto lending platform Ledn has closed a $188 million asset-backed securities (ABS) issuance backed by its portfolio of Bitcoin (BTC)-collateralized retail loans, marking what the company describes as an industry first.
On Feb. 20, Ledn announced that S&P assigned an investment grade rating of BBB- to the senior notes in the offering. The company said this is the first time a major global credit rating agency has issued an investment-grade rating tied to a digital asset lending portfolio.
The transaction was reportedly more than two times oversubscribed, with institutional demand exceeding the $188 million offering size.
Related: Ledn co-founder says crypto regulatory tailwind from the U.S. is fueling Bitcoin lending boom
Asset-backed securities are structured financial products typically supported by pools of loans, such as auto loans or mortgages.
By packaging Bitcoin-collateralized loans into an ABS structure, Ledn is effectively linking crypto-native lending to traditional fixed-income markets.
In global finance, an investment-grade rating signals that an asset meets specific benchmarks for credit quality and structural protections. A BBB- rating sits at the lower end of the investment grade spectrum but remains above speculative or “junk” status.
Ledn said its operations underwent an extended evaluation as part of the rating process, with its loan book and risk management framework assessed using methodologies commonly applied to traditional consumer lending assets.
The company stated that its portfolio has operated since 2018 and navigated multiple market cycles, including the 2022 crypto credit crisis, without client asset losses.
Ledn said the ABS issuance changes the source of capital used to fund loans but does not alter how client collateral is held.
According to the company, Bitcoin pledged as collateral remains in custody and ring-fenced from funding partners’ assets. Ledn added that neither it nor its funding partners are permitted to rehypothecate client collateral to generate additional yield.
By tapping the ABS market, Ledn aims to create a direct funding channel between Bitcoin holders seeking liquidity and institutional credit investors. The company said the structure provides access to deeper pools of capital that are independent of day-to-day volatility in digital asset markets.
