Tether has disclosed an investment in Ledn, a company that provides Bitcoin-backed consumer loans. 

The companies stated that the investment is intended to support the development of credit products that allow borrowers to obtain liquidity without selling their digital assets.

Ledn’s platform includes custody, risk-management, and liquidation mechanisms designed to secure collateral throughout the loan term. 

The firm serves both retail and institutional borrowers and reports growing activity in Bitcoin-backed lending.

According to Ledn, it has originated more than $2.8 billion in Bitcoin-backed loans since its founding, including over $1 billion in 2025. 

The company reported $392 million in loan originations during the third quarter of 2025, approaching its total volume for 2024, and says its annual recurring revenue has surpassed $100 million.

Ledn operates in the centralized segment of this market and says it aims to broaden access as demand evolves.

“Our investment reflects Tether’s belief that financial innovation should empower people,” said Paolo Ardoino, CEO of Tether. 

“Together with Ledn, we are expanding access to credit without requiring individuals to sell their digital assets. 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.”

“This investment brings together two market leaders to shape the future of the Bitcoin-backed lending market,” said Adam Reeds, co-founder and CEO of Ledn. 

“As Ledn’s loan book is on track to nearly triple from our 2024 levels, it validates our decision to go all-in on Bitcoin. We expect demand for Bitcoin financial services to continue soaring, and this collaboration with Tether ensures that Ledn remains well-positioned to lead as the market continues to evolve and grow. We are excited for the opportunities that lie ahead to collaborate and innovate in this space.”

The companies stated that the investment will support the use of Bitcoin as loan collateral and may enable wider availability of Tether’s products within lending markets. 

Ledn’s model allows clients to retain exposure to Bitcoin while using it as backing for credit, a structure both organizations cite as central to their collaboration.

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