Tether Moves Into Bitcoin-Backed Lending With Strategic Ledn Stake

CN
2 hours ago

Ledn has reported a substantial increase in its lending activity, positioning it as a key player in this niche. The company announced it has originated over $2.8 billion in loans since its founding, with more than $1 billion of that total being issued in 2025 alone. Its third-quarter volume of $392 million nearly matched its entire loan origination for the previous year.

The platform’s growth reflects a broader industry trend. A recent market outlook from Data Intel projects the crypto-backed lending sector will expand from an estimated $7.8 billion in 2024 to over $60 billion by 2033. This growth is driven by demand from both individuals and institutions seeking liquidity from their digital assets.

Tether’s CEO, Paolo Ardoino, stated the investment aligns with the company’s focus on financial infrastructure. “Our investment reflects Tether’s belief that financial innovation should empower people,” Ardoino said. He emphasized the goal of expanding credit access while supporting the concept of self-custody for digital assets.

For Ledn, the partnership with the world’s largest stablecoin issuer provides a strategic advantage. “This investment brings together two market leaders to shape the future of the bitcoin-backed lending market,” said Adam Reeds, Ledn’s co-founder and CEO. Reeds noted the company’s loan book is on track to nearly triple from 2024 levels, validating its focused strategy.

The collaboration points to a continuing effort to integrate digital assets into conventional finance. By leveraging Ledn’s lending infrastructure, the companies aim to create new use cases for bitcoin and Tether’s stablecoins, promoting them as tools for wealth preservation and financial resilience.

  • Why did Tether invest in Ledn? Tether invested to support the expansion of bitcoin-backed lending, a market experiencing rapid growth.
  • How successful is Ledn’s lending business? Ledn has originated over $2.8 billion in loans and is on track to nearly triple its loan book from 2024.
  • What is the forecast for the crypto lending market? The sector is projected to grow to over $60 billion by 2033, according to industry analysis.
  • Who uses bitcoin-backed loans? Both retail and institutional borrowers use them to access liquidity while retaining their bitcoin investments.

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