Tether has made a new strategic push into the crypto-credit sector, announcing that it has taken an investment stake in Ledn, one of the leading providers of Bitcoin-backed loans. The move strengthens Tether’s growing portfolio outside stablecoins and positions the company more deeply in the rapidly expanding market for BTC-collateralized credit.
The partnership is designed to scale lending products that allow users to borrow against their bitcoin without selling it, a model that has surged in popularity during the latest cycle. By pledging BTC as collateral, borrowers can unlock liquidity while maintaining long-term exposure, an increasingly valuable option during periods of market uncertainty.
Ledn's Growth and Market Position
Ledn’s rapid growth was a key driver behind Tether’s investment. The company has originated more than $2.8 billion in Bitcoin-backed loans since launch, including over $1 billion in 2025 alone, as demand for crypto-secured credit accelerates globally. Ledn has also crossed $100 million in Annual Recurring Revenue, signaling substantial institutional and retail appetite for BTC-based lending products.
Industry Trends and Tether's Strategy
The timing of the investment aligns with a broader industry shift toward more mature crypto-credit infrastructure. CeFi lenders, including Tether, Ledn, and Galaxy Digital, now dominate a large share of the market, offering borrowers traditional credit structures with digital-asset collateral. Tether’s move further consolidates its influence across this sector while diversifying its business interests, which now span AI, commodities, gold, and financial technology.
For Tether, the deal represents a continuation of its strategy to expand beyond stablecoins and deploy profits into high-growth, infrastructure-focused ventures. For Ledn, the partnership provides a capital boost at a moment when Bitcoin-backed lending is becoming a cornerstone of the emerging digital-asset credit economy.