Tether has made a strategic investment in Ledn, a digital-asset lender specialising in bitcoin-backed loans. The move is intended to expand access to credit products that allow customers to borrow against their bitcoin holdings rather than sell them.
Ledn, which offers custody, risk-management and liquidation systems designed to secure customer collateral, has originated more than $2.8 billion in bitcoin-backed loans since launch.
The company reports more than $1 billion in loan originations so far in 2025 and annual recurring revenue above $100 million, showing rising demand for crypto-collateralised borrowing.
Industry forecasts suggest the market could continue to grow. A report from Data Intelo estimates the crypto-backed lending sector may expand from about $7.8 billion in 2024 to more than $60 billion by 2033, driven by interest in alternative lending models built on digital-asset collateral.
Paolo Ardoino, Tether’s CEO, said the investment reflects the company’s belief that “financial innovation should empower people,” adding that the collaboration is aimed at widening access to credit without forcing customers to sell their digital assets.
Adam Reeds, co-founder and CEO of Ledn, said the partnership positions the firm to meet rising demand as its loan book grows and bitcoin financial services become more widely adopted.
The companies said the investment will support new use cases for digital-asset-backed credit and may help expand distribution of Tether-related financial products across additional markets.
