Crypto lender Ledn has launched its first $188 million of asset backed securities (ABS) with Jefferies as lead manager. Ledn is one of the major players in the bitcoin lending sector dominated by Tether, which also invested in Ledn in late 2025. Given the graveyard of crypto lenders, the first question might be: who bought the ABS? Unfortunately we don’t have that answer, but what’s more interesting is this is not as risky as one might expect. S&P Global gave the larger Class A tranche of the 15 year note a preliminary rating of BBB‑ (sf).
Many of the failed crypto lenders shared a common feature: weak risk management resulting in an overexposure to one or more customers combined with insufficient cover based on loan-to-value (LTV) ratios. By contrast, Ledn’s ABS has a fairly low weighted average LTV (54.8%) and is reasonably well diversified. If the LTV on a single loan reaches 80% and no further collateral is posted, Ledn automatically liquidates the bitcoin.
In terms of diversification, an S&P Global ratings report shows there are 5,441 loans across 2,914 borrowers with loans ranging from $500 to $3 million. The top 20 borrowers hold 66 loans, accounting for 20.82% of the outstanding balance.
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