The offering is made up of two separate bonds backed by consumer loans collateralized by bitcoin, respectively rated BBB- (the riskiest rating that still qualifies as investment grade) and B- (speculative) by S&P Global Ratings. Jefferies designed the deal and is selling it to investors, with the less risky bonds paying about 3.35 percentage points more than prevailing market rates, Bloomberg reported, citing sources. In an email, Ledn co-founder Mauricio Di Bartolomeo said the company expects to close the transaction this week. (The Logic, Bloomberg)

Talking point: The deal marks the first time a pool of loans backed by digital assets has made its way through the traditional financial system. The fact that a major credit rating agency deemed one of the bonds investment grade signals growing comfort with crypto as an asset class. Now based in the Cayman Islands, Ledn emerged from the crash of 2022 as the last major crypto lender operating. According to a November release announcing an investment from stablecoin giant Tether, Ledn has annual recurring revenue of more than US$100 million and has originated more than US$2.8 billion in bitcoin-backed loans since inception.

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