Digital asset lending firm Ledn has accomplished the first-ever transaction of its sort within the asset-backed debt market, promoting $188 million in securitized bonds backed by Bitcoin (BTC).
This growth emerges because the lending market confronts a risky setting. Energetic loans have fallen to round $30 billion, and liquidation dangers are rising with persistent value declines.
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Coinbase and Ledn Double Down on Crypto Lending
Bloomberg, citing sources accustomed to the matter, reported that the deal consists of two bonds. One portion, rated investment-grade, was priced at a diffusion of 335 foundation factors above the benchmark price.
In response to a report from S&P International Rankings, the bonds are secured by a pledge of 4,078.87 Bitcoin. The truthful market worth stands at roughly $356.9 million.
The loans carry a weighted common rate of interest of 11.8%. Jefferies Monetary Group Inc. served because the lead supervisor, structuring agent, and preliminary purchaser.
“Ledn’s liquidation engine is an algorithmic trading program that sources prices on multiple exchanges and/or is available through multiple trading partners. Ledn has successfully liquidated BTC collateral to repay 7,493 loans in its seven-year history, with an average LTV at liquidation of 80.32%, a maximum LTV at liquidation of 84.66%, and has never experienced a loss. On a WA basis, liquidation upon an LTV EOD has taken under 10 seconds, with minimal “price slippage” in execution,” the report reads.
Past Ledn, Coinbase is increasing its footprint in crypto-backed lending. In a latest replace, the change stated customers can borrow as much as $100,000 in USDC, the stablecoin issued by Circle, by pledging XRP (XRP), Cardano (ADA), Dogecoin (DOGE), or Litecoin (LTC) as collateral by the decentralized finance protocol Morpho.
The providing is on the market throughout the US, except for New York, in accordance with the corporate.
Our crypto backed mortgage choices are increasing.
Now you may immediately borrow USDC towards your XRP, DOGE, ADA, and LTC, in addition to BTC and ETH. https://t.co/AC2AtNTImw
— Brian Armstrong (@brian_armstrong) February 18, 2026
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Crypto Lending Shrinks 36% as Energetic Loans Fall
This comes at a pivotal second for the crypto lending sector, which has contracted sharply amid broader market weak point. Information from TokenTerminal confirmed that as of February 2026, whole energetic loans throughout lending protocols stand at roughly $30 billion, down 36% from the September peak of $46.96 billion.
Energetic Loans on Crypto Lending Protocols. Supply: TokenTerminal
The decline coincides with a sustained downtrend within the crypto market since October, which doubtless amplified the contraction. Falling asset costs scale back the greenback worth of posted collateral, tightening borrowing capability and contributing to liquidations or voluntary deleveraging.
This compresses excellent mortgage balances whereas mechanically reducing whole worth locked when measured in USD phrases. Elevated volatility additional pressures leveraged positions, reinforcing the decline in energetic loans.
“Quick loan refresher during volatile markets: As BTC price drops, LTV rises, Higher LTV = higher liquidation risk, Adding collateral or repaying part of the loan lowers LTV, Tools exist to help, but understanding the mechanics always comes first,” Ledn posted.
On the identical time, whole worth locked throughout lending protocols fell from greater than $89.7 billion in October to roughly $52 billion, in accordance with DefiLlama. This represented a decline of round 42%.
The decline displays each asset value depreciation and capital outflows, as weaker market circumstances lowered threat urge for food, suppressed new borrowing demand, and prompted customers to deleverage or rotate into lower-risk belongings.
