KEY TAKEAWAYS
- Tether invests in Ledn to enhance bitcoin-backed lending, emphasizing financial infrastructure development.
- Ledn has originated over $2.8 billion in loans, with $1 billion in 2025 alone, showcasing its market success.
- The crypto-backed lending market is projected to grow significantly, driven by demand for alternative lending solutions.
- Collaboration with Tether aims to expand credit access while maintaining digital asset ownership.
On November 18, 2025, Tether, a leading entity in the digital asset industry, announced an investment in Ledn, a prominent player in the consumer bitcoin-backed loans market. This strategic move highlights Tether’s commitment to developing financial infrastructure that enables access to credit without the need to liquidate digital assets.
Ledn’s platform is equipped with advanced custody, risk management, and liquidation systems, ensuring the security of digital assets backing loans throughout their duration. The company has originated over $2.8 billion in bitcoin-backed loans since its inception, with more than $1 billion generated in 2025 alone, marking its most successful year to date.
Expanding Access to Credit
Ledn’s infrastructure positions it to expand credit access across both retail and institutional markets, as the bitcoin-backed lending sector is poised for significant growth. According to Data Intelo, the crypto-backed lending market is projected to grow from an estimated USD 7.8 billion in 2024 to over $60 billion by 2033. This growth is driven by the increasing demand for alternative lending solutions that leverage cryptocurrencies, providing flexible liquidity access without asset liquidation.
Paolo Ardoino, CEO of Tether, stated that the investment reflects Tether’s belief in empowering individuals through financial innovation. He emphasized that the collaboration with Ledn aims to expand credit access while maintaining digital asset ownership, thereby enhancing financial resilience and self-custody.
Ledn’s Market Leadership
Ledn’s co-founder and CEO, Adam Reeds, noted that the company’s loan book is on track to nearly triple from 2024 levels, validating its focus on bitcoin-backed financial services. Reeds expressed confidence in the continued demand for these services and highlighted the collaboration with Tether as a means to maintain Ledn’s leadership as the market evolves.
By allowing borrowers to use bitcoin as collateral rather than selling it, Ledn and Tether are advancing new pathways for wealth preservation and financial resilience. This approach not only supports long-term use cases for decentralized technology but also aligns with Tether’s strategy to expand the use and distribution of its assets across new markets.
Why This Matters: Impact, Industry Trends & Expert Insights
Tether’s investment in Ledn marks a strategic move to bolster Bitcoin-backed lending, enhancing financial infrastructure without asset liquidation.
Recent industry reports indicate that the Bitcoin-backed lending market has surged significantly in 2025, with platforms like Ledn experiencing substantial growth and adoption among both retail and institutional clients. This aligns with Tether’s strategic investment aimed at expanding credit access through Bitcoin-backed loans.
A CoinDesk report highlights that Tether has solidified its dominance in centralized finance (CeFi) lending, with its USDT stablecoin playing a significant role in the market. This supports Tether’s investment in Ledn as a move to further leverage its position in the crypto lending sector.
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