Tether, the issuer of the USDT stablecoin, has made a strategic investment in bitcoin-backed lending platform Ledn, aiming to broaden access to crypto-collateralized credit for individuals and businesses. By allowing borrowers to leverage bitcoin without selling it, the partnership reinforces the practical use of digital assets in financial services.
Ledn Reports Accelerated Growth in Bitcoin-Backed Lending
Ledn has originated more than $2.8 billion in bitcoin-backed loans since its founding, including over $1 billion in 2025 alone. In the third quarter, the platform issued $392 million in new loans, nearly matching its total volume from 2024, while annual recurring revenue exceeded $100 million.
The company operates a custody, risk management, and liquidation system designed to secure client assets throughout the life of each loan. Ledn co-founder and CSO Mauricio Di Bartolomeo highlighted the firm’s resilience during the 2022 market turmoil, citing sound risk management and strong asset protection as key factors in maintaining client trust.
Tether Investment Expands Access to Crypto-Collateralized Credit
Tether CEO Paolo Ardoino said the investment allows borrowers to maintain bitcoin holdings while accessing credit. He explained that the approach strengthens self-custody and financial resilience while offering practical use cases for digital assets. Details on the investment size and terms were not disclosed.
The crypto-backed lending sector is projected to expand from $7.8 billion in 2024 to over $60 billion by 2033, according to Data Intelo. Ledn’s fully collateralized model, third-party Proof of Reserves attestations, and compliance with regulated VASP standards provide a framework for secure growth and market confidence.
Collaboration Reflects Long-Term Confidence in Bitcoin Lending
Ledn co-founder and CEO Adam Reeds said the partnership ensures the company remains well-positioned as the bitcoin lending market evolves. By providing loans backed by digital assets, the firms aim to offer financial flexibility while preserving wealth. Analysts note that such collaborations signal increased trust in regulated lending platforms after the disruptions of previous years.
The Tether-Ledn alliance highlights continued expansion in crypto-backed financial services, giving borrowers new opportunities to leverage bitcoin without liquidating it and supporting the long-term adoption of digital assets in mainstream finance.
The information presented in this article is for informational purposes only and should not be interpreted as investment advice. The cryptocurrency market is highly volatile and may involve significant risks. We recommend conducting your own analysis.