Tether has expanded its investment portfolio by acquiring a stake in Ledn, a company recognized as an emerging leader in Bitcoin-backed loans. This strategic move positions Tether within the growing financial infrastructure sector that enables users to leverage the value of digital assets without the necessity of selling them.
The investment in Ledn, a company offering a suite of services including BTC-backed loans, custody, risk management, and liquidation protection, signifies Tether's commitment to innovative financial solutions.

Tether's participation in the crypto-backed lending industry aims to provide holders with the ability to access the value of their Bitcoin holdings without needing to liquidate their positions.
Paolo Ardoino, CEO of Tether, stated, "Our investment reflects Tether’s belief that financial innovation should empower people."
Ardoino further elaborated, "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."
Prior to Tether's involvement, Ledn had successfully originated over $2.8 billion in BTC-backed loans, with 2025 marking its most robust year to date, exceeding $1 billion in originations. Ledn is actively working to broaden its credit access for both retail and institutional clients and anticipates significant growth in the crypto-backed lending market.
The company previously secured a debt-based funding round led by Sygnum. Ledn is registered in the USA and is fully operational as a registered entity. To date, Ledn has raised over $104 million across several funding rounds, with $100 million of that amount raised during the 2021 bull market.
Despite the potential, Bitcoin lending has seen slower adoption compared to Ethereum, Solana, and other altcoins. The substantial value of Bitcoin has often deterred holders from depositing their assets into lending protocols. Ledn, however, is focused on offering minimized risk through a highly controlled liquidation system.
Adam Reeds, co-founder and CEO of Ledn, indicated that the company expects to triple its loan volumes from 2024 levels.
Reeds commented, "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."
Challenges and Opportunities in BTC Lending
Decentralized finance (DeFi) protocols built on Bitcoin remain relatively limited, with few projects utilizing coins directly on the original mainnet.
Currently, Bitcoin-based DeFi holds approximately $6.8 billion in total value locked, a modest figure considering the market capitalization of Bitcoin. Key protocols that incorporate Bitcoin include Lombard, Babylon Labs, and Threshold Network.
A primary factor contributing to the scarcity of native Bitcoin lending solutions is the prevalence of various wrapped versions of Bitcoin. These tokenized forms are widely adopted within the Ethereum ecosystem, with a long-standing tradition of vaults backed by WBTC. Consequently, accurately tracking the total value of Bitcoin-based DeFi is challenging. The available Bitcoin collateral is dispersed across numerous protocols, making it difficult to ascertain the exact amount of outstanding loans.
On Aave, there are currently $4.15 billion in WBTC collateral, with $2.44 billion in available liquidity. The rapid expansion of Ledn is approaching Aave's current levels, indicating a significantly faster growth trajectory for the company.

