Strategic move boosts BTC-backed credit amid surging demand for digital asset liquidity1
Tether, the leading stablecoin issuer, has made a strategic investment in bitcoin-backed lending platform Ledn, aiming to broaden access to credit secured by digital assets. The investment comes as demand for crypto-backed lending grows rapidly, enabling users to access liquidity without selling their Bitcoin holdings.
Ledn’s Growth and Market Position
Since its launch, Ledn has originated over $2.8 billion in BTC-backed loans, with more than $1 billion issued in 2025 alone. This includes $392 million in the third quarter, nearly matching the company’s total lending volume in 2024. The Cayman Islands-registered lender survived the crypto lending crisis of 2022, which saw major firms such as BlockFi, Voyager, Celsius, and Genesis collapse.
Ledn has streamlined its offerings by focusing on Bitcoin-only loans, simplifying its services, and strengthening operational efficiency. This strategic focus has positioned the firm for global expansion and its strongest year yet in originations.
Tether’s Strategic Vision
Tether CEO Paolo Ardoino emphasized the investment reflects a commitment to financial empowerment through self-custodial credit. He stated, “This investment underscores Tether’s mission to support real-world financial services built on digital asset rails, providing users with access to liquidity without selling their BTC.”
The size of the investment has not been disclosed, but it forms part of Tether’s broader strategy to enable digital asset-based financial products. By partnering with Ledn, Tether aims to strengthen the infrastructure for Bitcoin-backed lending and expand its reach into global markets.
The crypto-backed lending market is forecast to grow nearly eightfold by 2033, driven by the need for short-term capital access without liquidating long-term digital holdings. Ledn’s growth trajectory and Tether’s backing signal increased confidence in the sector, particularly in resilient, single-asset lending models.
By investing in Ledn, Tether is supporting the expansion of digital asset credit solutions, helping users unlock value from their Bitcoin holdings while maintaining ownership. This partnership reflects a broader trend of integrating stablecoins and crypto-backed financial services into mainstream financial systems.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.