Wall Street’s first attempt at a public bond sale backed by bitcoin loans has hit some turbulence after bitcoin’s sharp decline triggered forced liquidations.

Bankers at Jefferies have spent months pitching institutional investors on a $188 million asset-backed bond deal tied to thousands of loans issued by crypto lender Ledn, according to Wall Street Journal reporting. 

The structure is designed to package one-year loans made to individuals who post bitcoin as collateral, with proceeds from the bond sale providing Ledn additional capital to extend new credit.

But the transaction has been tested after bitcoin fell roughly 27% since mid-January, prompting margin calls…

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