Tether has expanded its presence in the lending market by investing in Ledn, a platform specializing in Bitcoin-collateralized loans.
This is reported by Finway
Strategic Partnership for the Development of the Crypto Lending Market
Tether, the issuer of the USDT stablecoin, has made a strategic investment in Ledn, one of the leading players in the global market for consumer loans backed by cryptocurrencies. The aim of this collaboration is to develop a financial infrastructure that allows users to obtain loans without having to sell their digital assets.
Ledn offers cryptocurrency-backed loans using its proprietary asset storage, risk management, and liquidation solutions. This enables clients to maintain control over their funds throughout the loan period.
Market Dynamics and Key Results
Since its launch, Ledn has issued loans totaling over $2.8 billion, with $1 billion alone in 2025 — a record for the company. In the third quarter of 2025, Ledn provided loans amounting to $392 million, nearly matching the total loan volume for the entire previous year. The company’s annual recurring revenue (ARR) exceeded $100 million, indicating a growing demand for Bitcoin-collateralized loans.
According to Data Intelo analytics, the market for crypto-backed lending is growing rapidly: from $7.8 billion in 2024, it could exceed $60 billion by 2033.
“Our investment reflects Tether’s belief that financial innovation should empower people,” said Tether CEO Paolo Ardoino.
He also emphasized that the partnership with Ledn enhances access to lending without the need to sell digital assets, reinforcing self-custody and financial independence for users.
Ledn co-founder and CEO Adam Reeds highlighted the strategic importance of this collaboration for the future of the Bitcoin-collateralized lending market. He stated that the company’s loan portfolio in 2025 nearly tripled compared to the previous year, confirming the company’s determination to develop the Bitcoin lending sector.
Tether’s investments reflect a growing trend in the use of cryptocurrencies as financial collateral. In 2025, several significant events occurred in the market:
- In Australia, Block Earner launched the first mortgage program backed by Bitcoin amid a housing crisis.
- CleanSpark received $100 million in funding from Coinbase Prime backed by its own Bitcoin portfolio (12,703 BTC).
- JPMorgan announced the launch of a program allowing institutional clients to use Bitcoin and Ethereum as collateral for loans.
- Metaplanet, the largest public Bitcoin holder in Asia, secured a $100 million loan using its crypto assets as collateral.