Tether, which claims to be one of the largest companies in the digital asset industry, announces an investment in Ledn, one of the global market leaders in consumer bitcoin-backed loans. The investment underscores Tether’s commitment to building real-world financial infrastructure that empowers individuals and businesses to access credit without selling their digital assets.
Ledn’s infrastructure includes custody, risk management, and liquidation systems that ensure clients’ digital assets “backing their loan remain secure throughout the life of each loan.”
Ledn is positioned to expand access to credit across retail and institutional markets as the bitcoin-backed lending market “potentially enters a phase of significant growth.”
Ledn has originated more than $2.8 billion in bitcoin-backed loans since its launch, including over $1 billion this year, reportedly marking its strongest year to date. In Q3 of this year, Ledn originated “$392 million, nearly matching the total volume generated during all of 2024.”
The firm now reports annual recurring revenue surpassing $100 million, underscoring demand for bitcoin-backed lending products.
According to Data Intelo’s crypto-backed lending market outlook, the research report indicates that the sector is set to grow from USD 7.8 billion in 2024 to over $60 billion by 2033, due to the “demand for alternative lending solutions that leverage cryptocurrencies as backing, providing individuals and enterprises with access to liquidity without liquidating digital assets.”
Given Ledn’s presence in centralized lending, it is positioned to deepen access to credit across retail and institutional markets as demand grows.
Paolo Ardoino, CEO of Tether said that together with Ledn, they are expanding access to credit without needing people to sell their crypto assets.
This approach strengthens self-custody and financial resilience, while at the same time also “creating real-world use cases that reinforce the long-term role of digital assets as essential pillars of a more inclusive global financial system.”
Adam Reeds, co-founder and CEO of Ledn said that as Ledn’s loan book is on track to nearly triple from their 2024 levels, it “validates their decision to go all-in on bitcoin.”
They expect demand for bitcoin financial services to “continue soaring, and this collaboration with Tether ensures that Ledn remains positioned to lead as the market continues to evolve.”
By enabling borrowers to use their bitcoin as backing instead of just sell it, Ledn and Tether are enabling pathways for wealth preservation, financial resilience, and use cases for decentralized tech.
Meanwhile, Ledn’s platform infrastructure makes it a fit for expanding the use and distribution of Tether’s assets across markets.
