Bitcoin News
By Jean-Luc Maracon
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Ledn Inc. is betting on Bitcoin. The crypto lending company has just completed a historic sale of $188 million in cryptocurrency-backed bonds, marking a first in the secured debt…
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The operation includes two tranches of bonds, one of which secured an investment-grade rating with a spread of 335 basis points above the benchmark rate.
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Crypto loans can turn into a nightmare if prices plummet suddenly. S&P Global Ratings believes investors retain partial protection thanks to Ledn's algorithmic liquidation…
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The agency analyzed borrower default behavior, recovery rates during liquidations, and concentration risk.
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At the "A" stress level, the agency applied a conservative assumption of 100% default. The stress modeled for the ratings includes a 79% default rate and a 68% recovery rate for…
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S&P sees strong structural protections: over-collateralization, early amortization triggers, a liquidity reserve funded at 5% of the notes' balance.
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Ledn plans to require cash interest payments for renewals starting in 2027. S&P believes this will reduce liquidity stress over time.
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On February 18, 2026, Ledn said the sale attracted strong institutional demand. The positive response reflects growing confidence in digital assets as loan collateral, despite…
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Jefferies noted that structuring required an in-depth analysis of Bitcoin risks. They highlighted that crypto volatility was a major factor in determining the issuance conditions.
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The market reacted positively to the news, with Bitcoin seeing a slight increase the following day.
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The Federal Reserve closely monitors these new crypto financial instruments. Jerome Powell expressed reservations about the increasing integration of cryptocurrencies into the…
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BlackRock and Fidelity are closely watching this evolution of the crypto bond market. Several institutional investment funds have reportedly shown interest in participating in…
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