Chiara Bianchi
Tether has made a strategic investment in Ledn, a Bitcoin-backed lending platform, in an effort to broaden credit access for both individuals and businesses — all without requiring borrowers to sell their digital assets.
Ledn provides an integrated custody, risk management, and liquidation framework designed to protect client funds at every step of a loan. Since its launch, the company has issued more than $2.8 billion in bitcoin-backed loans, with over $1 billion originated this year alone.
The platform recently reported a standout third quarter, originating $392 million in loans, nearly reaching its total 2024 volume. Ledn also surpassed $100 million in annual recurring revenue, signaling rising global demand for Bitcoin-backed borrowing.
Tether and Ledn say the partnership opens new opportunities for wealth preservation, financial flexibility, and broader use cases for digital assets by allowing bitcoin holders to borrow against their holdings instead of liquidating them.
“This approach strengthens self-custody and long-term financial resilience,” Tether CEO Paolo Ardoino said, adding that this model enhances the role of digital assets as foundations of a more inclusive financial system. The investment amount was not disclosed.
A Rebounding Sector After Years of Turmoil
The crypto lending industry faced major challenges during the wave of centralized platform failures in 2022 — a period marked by the collapse of BlockFi, Celsius, Genesis, and Voyager Digital.
Survival in such an environment required strong risk controls. Ledn co-founder and CSO Mauricio Di Bartolomeo previously noted that the firm endured the crisis thanks to its “sound risk management program” and its strict focus on asset safety and transparency.
Ledn attributes its recent growth to its fully collateralized lending model, regular third-party Proof of Reserves attestations, and its operations through regulated VASP entities — a contrast to the opaque practices that led to many competitors’ failures.
Now, the industry is entering a new expansion phase. A Data Intelo report projects that the crypto-backed lending market could surge from $7.8 billion in 2024 to over $60 billion by 2033, fueled by increasing demand for alternative credit solutions tied to digital assets.
Ledn Positions Itself for the Next Phase of Growth
Ledn CEO and co-founder Adam Reeds said the partnership with Tether will help the company scale as interest in Bitcoin-based financial services accelerates.
“We expect demand for bitcoin financial services to continue soaring, and this collaboration with Tether ensures Ledn remains well-positioned as the market evolves,” Reeds said.
