Tether Invests in Ledn to Bolster Bitcoin-Backed Lending Market

Tether, known as a major player in the digital asset industry, has announced a significant investment in Ledn, a leading company in the bitcoin-backed lending market. This strategic move is designed to enhance the infrastructure for bitcoin-backed loans, allowing individuals and businesses to access credit without the need to liquidate their digital assets, according to Tether.

Enhancing Financial Infrastructure

Ledn, which has developed a robust system for asset custody, risk management, and liquidation, is set to expand its reach in both retail and institutional markets. The company has already originated over $2.8 billion in bitcoin-backed loans, with 2025 marking its strongest year to date. In Q3 alone, Ledn extended $392 million in loans, indicating a burgeoning demand for such financial products.

Market Growth and Future Prospects

The crypto-backed lending sector is projected to grow substantially from an estimated $7.8 billion in 2024 to over $60 billion by 2033, driven by the increasing need for alternative lending solutions that utilize cryptocurrencies. Ledn’s established presence positions it well to capitalize on this growth, particularly as demand for bitcoin-backed financial services continues to rise.

Leadership Insights

Paolo Ardoino, CEO of Tether, emphasized the investment as a commitment to financial innovation that empowers individuals. “Together with Ledn, we are expanding access to credit without requiring individuals to sell their digital assets,” Ardoino stated. This approach, he noted, promotes self-custody and financial resilience, reinforcing the role of digital assets in a more inclusive global financial system.

Adam Reeds, co-founder and CEO of Ledn, expressed optimism about the collaboration with Tether. “As Ledn’s loan book is on track to nearly triple from our 2024 levels, it validates our decision to go all-in on bitcoin,” Reeds remarked. He anticipates continued growth in demand for bitcoin financial services, with the partnership ensuring Ledn’s leadership in the evolving market.

Innovative Financial Solutions

This collaboration aims to open new avenues for wealth preservation and financial resilience, allowing borrowers to leverage their bitcoin holdings instead of selling them. Ledn’s platform is poised to facilitate the expanded use and distribution of Tether’s assets, further cementing its role in the global financial landscape.

Image source: Shutterstock