In a landmark transaction for institutional crypto adoption, cryptocurrency lending platform Ledn has successfully issued $188 million in bonds collateralized by Bitcoin. The deal, structured and managed by investment bank Jefferies, represents a significant step in bridging decentralized digital assets with traditional capital markets.
The bond offering utilizes approximately 4,087.87 BTC, valued at $360 million at the time of issuance, as direct collateral. This creates a conservative loan-to-value (LTV) ratio of approximately 52%, providing a substantial buffer against Bitcoin's price volatility for bondholders. A portion of the issuance carried a pricing spread of 335 basis points over the benchmark rate, which analysts note is comparable to high-yield corporate debt, indicating how traditional fixed-income markets assess the risk of Bitcoin collateral.
This transaction marks a departure from previous crypto financing methods like venture capital or token sales. Instead, it establishes a template for accessing traditional debt markets using the cryptocurrency itself as verifiable, on-chain collateral. The involvement of Jefferies lends mainstream financial credibility and signals growing institutional acceptance of Bitcoin as legitimate collateral for sophisticated debt instruments.
The development is seen as part of a broader maturation of the digital asset ecosystem, coinciding with the growth of Bitcoin ETFs and institutional custody services. Experts suggest it could pave the way for other crypto companies to pursue similar bond issuances and potentially influence traditional corporations to consider digital assets in their treasury management strategies.
