Tether has announced a strategic investment in Ledn, a bitcoin-backed lending platform, aiming to broaden access to credit for both individuals and businesses by enabling the use of bitcoin as collateral instead of requiring its sale.

Ledn’s growth and risk management

Ledn has originated more than $2.8 billion in bitcoin-backed loans since its inception, including over $1 billion in 2025 alone.

The company reported $392 million in loan originations in the third quarter of 2025 and annual recurring revenue surpassing $100 million.

Ledn attributes its survival through the 2022 centralized lender crisis to its “sound risk management program” and focus on client asset security.

The firm maintains a fully collateralized model, conducts regular third-party Proof of Reserves attestations, and operates through regulated entities.

Market demand for bitcoin-backed credit

Tether’s investment comes as the market for bitcoin-backed lending is projected to expand dramatically.

Industry research suggests the sector could grow from $7.8 billion in 2024 to more than $60 billion by 2033, fueled by rising demand for alternative credit options secured by digital assets.

By using bitcoin as collateral, borrowers can preserve their holdings while accessing needed capital.

Statements from leadership

Tether CEO Paolo Ardoino emphasized the broader impact of the partnership, stating:

“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.”

Ledn co-founder and CEO Adam Reeds added that the collaboration positions Ledn to lead as the market evolves, anticipating continued growth in demand for bitcoin financial services.