• Ledn issued $188 million in Bitcoin-backed securitized bonds.
• Coinbase expands crypto-backed loans using XRP, ADA, DOGE, LTC.
• Active crypto loans have dropped 36% since September peak.

Digital asset lending company Ledn has completed the first-ever transaction of its kind in the asset-backed debt market, selling $188 million in securitized bonds backed by Bitcoin (BTC).

This development emerges as the lending market confronts a volatile environment. Active loans have fallen to around $30 billion, and liquidation risks are rising with persistent price declines.

Coinbase and Ledn Double Down on Crypto Lending

Bloomberg, citing sources familiar with the matter, reported that the deal consists of two bonds. One portion, rated investment-grade, was priced at a spread of 335 basis points above the benchmark rate.

According to a report from S&P Global Ratings, the bonds are secured by a pledge of 4,078.87 Bitcoin. The fair market value stands at approximately $356.9 million.

The loans carry a weighted average interest rate of 11.8%. Jefferies Financial Group Inc. served as the lead manager, structuring agent, and initial 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.

Beyond Ledn, Coinbase is expanding its footprint in crypto-backed lending. In a recent update, the exchange said users can borrow up to $100,000 in USDC, the stablecoin issued by Circle, by pledging XRP (XRP), Cardano (ADA), Dogecoin (DOGE), or Litecoin (LTC) as collateral through the decentralized finance protocol Morpho.

The offering is available across the US, with the exception of New York, according to the company.

Crypto Lending Shrinks 36% as Active Loans Fall

This comes at a pivotal moment for the crypto lending sector, which has contracted sharply amid broader market weakness. Data from TokenTerminal showed that as of February 2026, total active loans across lending protocols stand at roughly $30 billion, down 36% from the September peak of $46.96 billion.

The decline coincides with a sustained downtrend in the crypto market since October, which likely amplified the contraction. Falling asset prices reduce the dollar value of posted collateral, tightening borrowing capacity and contributing to liquidations or voluntary deleveraging.

This compresses outstanding loan balances while mechanically lowering total value locked when measured in USD terms. Increased volatility further pressures leveraged positions, reinforcing the decline in active 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.

At the same time, total value locked across lending protocols fell from more than $89.7 billion in October to roughly $52 billion, according to DefiLlama. This represented a decline of around 42%.

The decline reflects both asset price depreciation and capital outflows, as weaker market conditions reduced risk appetite, suppressed new borrowing demand, and prompted users to deleverage or rotate into lower-risk assets.