Tether Invests in Ledn to Expand Bitcoin-Backed Lending
Tether, the issuer of USDT stablecoin, has invested in Ledn. Ledn is a platform offering bitcoin-backed consumer lending. This partnership aims to grow credit access using digital assets as collateral. Both companies want to build infrastructure for loans without requiring asset sales.
Ledn’s platform uses advanced custody, risk management, and liquidation systems. These features protect borrowers’ digital assets during loan terms. The deal will help expand credit availability in retail and institutional markets as bitcoin-backed lending grows.
Ledn’s Strong Market Performance
Since its inception, Ledn has originated over $2.8 billion in bitcoin-backed loans. In 2025, the company had its best year, with loan originations above $1 billion. The third quarter alone saw $392 million, almost matching all of 2024.
This growth led Ledn to generate over $100 million in annual recurring revenue. The crypto-backed lending market is forecasted to grow from $7.8 billion in 2024 to more than $60 billion by 2033, according to Data Intelo.
Executives Highlight Strategic Benefits
Tether CEO Paolo Ardoino said the investment supports financial innovation that empowers people. He added that the partnership expands credit access without forcing users to sell digital assets. Ardoino emphasized the goal of strengthening self-custody and financial resilience globally.
Ledn CEO Adam Reeds called the investment a union of two market leaders. He said their loan book is set to nearly triple from 2024 levels. Reeds expects growing demand for bitcoin financial services and sees the collaboration as key to leading the market’s evolution.
Impact and Future Outlook
This partnership allows borrowers to use bitcoin as collateral, preserving wealth and building financial resilience. Ledn’s infrastructure suits Tether’s plan to expand asset utility across new markets. The collaboration is expected to boost credit access in both retail and institutional segments.
Tether’s investment in Ledn signals a push for non-liquidation credit products that leverage digital currencies’ value. It marks progress toward more inclusive and resilient global financial services.
