TLDR:
- The transaction includes investment-grade tranches rated BBB- by S&P Global.
- A total of 4,078 BTC serve as collateral to ensure debt repayment.
- Jefferies Financial Group led the structuring of this innovative financial product.
Ledn has just marked a historic milestone in the convergence between traditional finance and digital assets. On Wednesday, Bloomberg reported that the company finalized a Bitcoin-backed bond sale for a total value of $188 million.
The transaction is divided into two tranches, featuring an investment-grade portion priced at a spread of 335 basis points over the benchmark rate. Consequently, the move reflects a growing appetite for securitized debt instruments that utilize digital assets as high-liquidity collateral.
To back this issuance, the firm pledged more than 4,078 units of Bitcoin, with a market value of approximately $356.9 million. Despite the inherent risks, S&P Global assigned a BBB- rating to the majority of the bonds, validating the deal’s structure.
Institutionalization of crypto credit amid market volatility
The success of this placement occurs in a volatile market for the pioneer cryptocurrency, which has experienced significant corrections over the past month. Nevertheless, the backing of giants like Tether and the participation of Jefferies Financial Group as the structuring agent underscore the project’s institutional strength.
Furthermore, this model allows investors to obtain fixed yields while Ledn expands its capacity to originate loans for users who prefer not to sell their assets. In this sense, the securitization of these loans offers a regulated pathway for institutional capital to enter the sector with traditional risk mitigants.
In summary, the performance of these bonds in secondary markets over the coming quarters will be the sector’s focal point. If successful, this milestone could catalyze a new wave of similar issuances, consolidating Bitcoin not only as an investment asset but as the foundation of a global fixed-income market.
