Tether has made an unspecified investment in Ledn, a provider of consumer Bitcoin-backed loans.
The issuer of the most widely used stablecoin said that the deal reflects real-world financial infrastructure that allows individuals and businesses “to access credit without selling their digital assets,” according to a statement on Tether’s website.
Growing demand
Demand for crypto-backed lending products is on the rise, with Tether citing Data Intelo’s estimate that the sector will grow from $7.8bn in 2024 to more than $60bn by 2033.
Ledn has originated more than $2.8bn in Bitcoin-backed loans since inception, including more than $1bn in 2025. The company offered Canada’s first Bitcoin-backed loan in 2018. In Q3 2025 alone, Ledn originated $392mn, nearly matching the total volume generated during all of 2024, the statement says.
The Cayman Islands-based company now reports annual recurring revenue (ARR) exceeding $100mn. Its infrastructure includes advanced custody, risk management, and liquidation systems that ensure the security of clients’ digital assets backing their loan, Tether says.
Access to credit
Paolo Ardoino, CEO of Tether said the tie-up would expand access to credit and strengthen self-custody.
Ledn’s loan book is on track to “nearly triple” from 2024 levels, Adam Reeds, co-founder and CEO of Ledn, said in the statement, adding that this “validates our decision to go all-in on Bitcoin.” He said that demand for Bitcoin financial services was expected “to continue soaring”.
Ledn’s platform infrastructure will expand the use and distribution of Tether’s assets across new markets, the statement adds.
Interest on Wall Street
Bitcoin-backed loans are also offered by crypto exchanges including Bitfinex and Coinbase. US banking giant JPMorgan is planning to allow institutional clients to use their Bitcoin and Ether as collateral for loans by the end of the year, according to media reports.
