Ledn Sells ₱10.89 billion ($188 million) Bitcoin-Backed Bonds After February Liquidations

Crypto lender Ledn sold ₱10.89 billion ($188 million) in securitized bonds backed by a pool of over 5,400 Bitcoin-collateralized consumer loans, according to Bloomberg. The transaction was structured by Jefferies Financial Group as sole structuring agent and bookrunner, with two bond tranches where the investment-grade tranche offered a spread of 335 basis points over benchmark rates.

Ledn's liquidations in early February tested its automated system. S&P Global Ratings noted that the automated liquidation engine has successfully liquidated 7,493 loans over seven years without principal losses. Ledn executes liquidations at an 81.4% loan-to-value threshold, though S&P warned that margin-driven defaults represent the most acute stress scenario because liquidations occur when Bitcoin prices are falling, potentially into thin or volatile markets where execution slippage matters most.

The loans backing the bonds carry a weighted average interest rate of 11.8%, with a total collateral package value of $200 million. S&P modeled a 79% default rate for the rated notes and assumed 100% defaults at its 'A' stress level. Under stress scenarios, the agency projected a 68% recovery rate for the BBB- class A tranche. A liquidity reserve equal to 5% of the note balance provides additional cushioning.

Bitcoin traded near $66,000 at the time of the announcement, down 46% from its October high. S&P noted that because Ledn underwrites loans primarily based on Bitcoin collateral rather than borrower credit profiles, traditional consumer loan performance metrics are limited.

Founded in September 2018, Ledn has funded $10.9 billion in lifetime loans and operates in over 120 countries with 51 employees. The company plans to require cash interest payments for loan renewals starting in 2027.