Tether Invests in Ledn as Bitcoin-Backed Lending Demand Climbs

• Tether invests in Ledn as Bitcoin-backed lending demand reaches record levels in 2025.
• Ledn surpasses $1B in annual loan volume and reports ARR above $100M.
• Crypto-backed lending market projected to grow from $7.8B in 2024 to $60B by 2033.

Tether has expanded its presence in digital-asset credit markets with an investment in Ledn, a company specializing in issuing loans backed by Bitcoin. The development comes as demand for crypto-secured lending continues to increase, with Ledn reporting its strongest year of activity to date and projections showing significant market expansion through the next decade.

Ledn’s latest performance data shows large growth in 2025. The company has issued more than $1 billion in Bitcoin-backed loans this year, bringing its total to over $2.8 billion since its inception. Activity in the third quarter alone reached $392 million, a figure nearly equal to the total loan volume recorded for 2024. The company now reports annual recurring revenue above $100 million.

The shift reflects broader momentum in crypto-secured financing. According to market research firm Data Intelo, the global crypto-backed lending industry is projected to rise from an estimated $7.8 billion in 2024 to more than $60 billion by 2033. The report cites increased interest in lending mechanisms that allow users to access liquidity while retaining ownership of digital assets.

Details of the Investment and Its Rationale

Tether described the investment as part of a broader effort to support financial infrastructure built around digital assets. Ledn’s platform includes custody, risk controls, and liquidation systems designed to protect collateral during the duration of each loan.

In a statement accompanying the announcement, Tether CEO Paolo Ardoino stated that the investment aligns with the company’s focus on financial tools that allow users to borrow without selling their digital holdings. He noted that approaches centered on collateral use aim to support asset retention and long-term resilience for borrowers.

Ledn CEO Adam Reeds said the company expects its loan book to nearly triple from 2024 levels, adding that rising demand for Bitcoin-based financial services has shaped its strategic direction. Reeds stated that Ledn views the collaboration as a way to maintain its position as market activity grows.

By enabling customers to use Bitcoin as loan collateral rather than sell it, both companies aim to broaden access to credit products tied directly to digital asset ownership. Ledn’s infrastructure, combined with Tether’s involvement, is expected to support the distribution of asset-backed lending services into additional markets as adoption grows.