The leading stablecoin issuing company, Tether, has strengthened its commitment to the Bitcoin-backed finance landscape with a new investment in a crypto firm.
According to a press release sent to CryptoPotato, the digital asset company has made a strategic investment in Ledn, a platform that offers loans powered by bitcoin (BTC). The investment represents Tether’s push into real-world credit markets.
Tether Invests in Ledn
Ledn offers a wide array of products, including risk management, advanced custody, and liquidation systems. The firm provides a system that enables individuals and businesses to access credit without having to sell their cryptocurrencies. Its infrastructure ensures that client collateral remains secure throughout the life of the loan.
Tether believes that Ledn has the capacity to expand retail and institutional access to credit as the bitcoin-backed market enters a phase of significant growth. The stablecoin issuer is committed to building a financial infrastructure that empowers its network, and this expansion, hence, the strategic investment.
“Our investment reflects Tether’s belief that financial innovation should empower people. Together with Ledn, we are expanding access to credit without requiring individuals to sell their digital assets. This approach strengthens self-custody and financial resilience, while creating real-world use cases that reinforce the long-term role of digital assets as essential pillars of a more inclusive global financial system,” commented Tether’s CEO, Paolo Ardoino.
Growing Demand for Bitcoin-backed Loans
An analysis by the market research company Dataintelo revealed that the crypto-backed lending sector is expected to grow from $7.8 billion in 2024 to at least $60 billion in 2033. The prediction is based on increasing demand for lending solutions that are alternative to traditional methods. More consumers need liquidity that does not require the liquidation of their digital assets.
So far, Ledn has facilitated $2.8 billion in bitcoin-backed loans since its inception in 2018. The company has generated more $1 billion this year, recording at least $392 million in Q3 alone. The amount recorded last quarter matched the total volume generated throughout 2024, making 2025 the firm’s strongest year yet.
Currently, Ledn reports an annual recurring revenue of more than $100 million. This highlights the growing demand for its products. As demand for bitcoin-backed loans accelerates, the firm has positioned itself to lead the pursuit of wealth preservation and financial resilience.
Ledn’s co-founder and CEO, Adam Reeds, said: “We expect demand for bitcoin financial services to continue soaring, and this collaboration with Tether ensures that Ledn remains well-positioned to lead as the market continues to evolve and grow. We are excited for the opportunities that lie ahead to collaborate and innovate in this space.”