- Ledn, backed by Tether, has launched its first $188 million asset-backed securities deal via lead manager Jefferies.
- The Class A tranche secured a preliminary BBB- (sf) rating from S&P Global, highlighting its perceived lower risk.
- The underlying loan portfolio has a low 54.8% weighted average loan-to-value ratio and is diversified across 2,914 borrowers.
- Automatic liquidation of Bitcoin collateral is triggered if a single loan’s LTV reaches 80%, mitigating risk.
In a significant test for the crypto lending sector’s revival, Ledn has launched its first $188 million of asset-backed securities with Jefferies acting as lead manager. This move follows a 2025 investment from industry giant Tether and attempts to distinguish itself from the graveyard of past failed lenders.
However, the transaction is structured to be less risky than the notorious collapses that defined the last cycle. For instance, an S&P Global ratings report shows the portfolio’s key risk metrics, which contributed to the preliminary BBB- (sf) rating for the senior Class A notes.
Consequently, the core strength lies in the underlying loan book’s low weighted average loan-to-value ratio of 54.8% and its broad diversification. The portfolio consists of 5,441 loans spread across 2,914 borrowers, with the top 20 borrowers accounting for just 20.82% of the outstanding balance.
Meanwhile, robust risk management protocols are designed to prevent concentrated losses. Specifically, Ledn will automatically liquidate a borrower’s bitcoin collateral if the LTV on any single loan reaches 80% without further collateral being posted.
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