Tether Invests in Ledn to Expand Bitcoin-Backed Lending Amid Surging Demand

Tether has made a strategic investment in Ledn, one of the foremost providers of bitcoin-backed consumer loans, in a move aimed at expanding access to credit secured by digital assets, the firm said in an emailed announcement on Tuesday.

The size of the investment has not been disclosed. Tether declined to provide further details when contacted by CoinDesk.

The investment forms part of Tether’s push to support real-world financial services built on digital asset rails. Bitcoin-backed lending allows users to access liquidity without selling $BTC to unlock short-term capital.

Ledn was the survivor of a rout of the crypto-backed lending sector in 2022, which saw the likes of BlockFi, Voyager, Celsius and Genesis collapse.

The Cayman Islands-registered company has streamlined its service, following a bitcoin-only model to simplify its offering and sharpen its focus.

Ledn, which has originated over $2.8 billion in $BTC-backed loans since launch, is on track for its strongest year yet. More than $1 billion in loans have been issued in 2025, including $392 million in Q3, nearly matching the firm’s entire 2024 volume.

Tether CEO Paolo Ardoino said the investment reflects a commitment to financial empowerment through self-custodial credit.