Tether Expands Portfolio with Investment in Ledn’s BTC Lending

TLDR

• Tether has invested in Ledn to expand its portfolio in the growing crypto-backed lending industry.
• Ledn offers Bitcoin-backed loans, custody, risk management, and liquidation protection services.
• The partnership between Tether and Ledn aims to provide credit access without the need to sell digital assets.
• Before Tether’s involvement, Ledn had already originated over $2.8 billion in Bitcoin-backed loans.
• Ledn expects to triple its loan levels in 2024, further strengthening its position in the crypto-lending market.

Tether has expanded its investment portfolio by investing in Ledn, a leading provider of Bitcoin-backed loans. This move brings Tether into the growing sector of crypto-backed lending, where users can access liquidity without selling their digital assets. The collaboration aims to strengthen the use of digital assets and enhance access to credit.

Tether Joins Crypto-Backed Lending Industry

Tether’s investment in Ledn highlights the growing trend of financial infrastructure that allows people to tap into their crypto holdings. Ledn offers Bitcoin-backed loans, custody, risk management, and liquidation protection services. This investment demonstrates Tether’s commitment to the crypto-backed lending space and the importance of self-custody.

Paolo Ardoino, CEO of Tether, stated, “Our investment reflects Tether’s belief that financial innovation should empower people.” He added that the collaboration with Ledn will provide greater access to credit without the need to sell digital assets. This partnership aligns with Tether’s goal of creating real-world use cases for digital currencies and strengthening their role in global finance.

Before Tether’s involvement, Ledn had already facilitated over $2.8 billion in Bitcoin-backed loans. Over $1 billion of this amount was originated in 2025, marking the company’s strongest year to date. The company aims to increase its credit access to both retail customers and institutions, expecting rapid growth in the crypto-backed lending sector.

Ledn’s Growth and Expansion Plans

Ledn has raised over $104 million in funding rounds, including a $100 million raise during the 2021 bull market. Sygnum previously led the company’s debt-based funding round. Ledn is a fully operational and registered entity in the USA and is expanding rapidly in the crypto-lending space.

Despite Bitcoin’s rising value, the crypto-backed lending market remains underdeveloped compared to other digital assets such as Ethereum and Solana. Many Bitcoin holders hesitate to deposit their coins due to its high value. Ledn aims to offer the lowest possible risk with a controlled liquidation system to mitigate these concerns.

According to Adam Reeds, co-founder and CEO of Ledn, “We expect demand for Bitcoin financial services to continue soaring, and this collaboration with Tether ensures that Ledn remains well-positioned to lead.” The company plans to triple its loan levels in 2024, as it continues to strengthen its position in the industry.

The DeFi protocols based on Bitcoin remain limited, with only $6.8 billion in value locked. Despite Bitcoin’s leading position, many BTC holders use wrapped Bitcoin (WBTC) on other blockchains, such as Ethereum. Aave, a primary DeFi protocol, holds $4.15 billion in WBTC collateral. However, Ledn’s rapid growth is approaching these levels, suggesting the company’s potential to lead the BTC-backed lending market.

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