Deal context
Ledn is a crypto-finance company that provides various financial services, including lending, savings and payment solutions using Bitcoin and other crypto-assets. Placing bonds backed by cryptocurrencies is a relatively new trend in the industry, allowing companies to raise funds without the need to sell their own crypto-assets.
According to Bloomberg, credit rating agency S&P Global assigned a relatively low BBB- rating to most of these bonds. Nevertheless, the deal indicates growing investor interest in crypto-assets as collateral for traditional financial instruments.
Expert opinion
The successful placement of $188 million in bonds by Ledn demonstrates that crypto companies can use their assets as collateral to raise funds in the debt market. This expands financing opportunities in the industry and could become an important trend in the coming years. However, the low BBB- rating also indicates that investors still approach such instruments with caution and require higher returns to compensate for the risks.