Tether Strengthens Its Push Into Bitcoin-Backed Lending With a New Strategic Investment in Ledn

Tether invests in Ledn to support wider access to bitcoin backed credit services.

Ledn reports strong loan growth as demand for crypto secured credit rises.

Bitcoin lending expands steadily despite slower adoption than other digital networks.

Tether expanded its portfolio with a new investment in Ledn, a provider of bitcoin-backed credit services. The move strengthened Tether’s presence in financial infrastructure that enables asset holders to unlock liquidity without selling their digital assets. The company continued its push toward services that operate on digital-asset rails and support self-custody.

Ledn already offered lending, custody, risk controls, and liquidation protection. The company positioned itself as a conservative provider in a sector that faced heavy disruptions in previous years. Its lending volumes continued to rise as retail and institutional users sought credit without parting with their bitcoin.

Ledn Records Strong Growth in Bitcoin-Backed Lending

Ledn claimed to have over $2.8 billion of cumulative bitcoin-based loan originations. The company also reported that it had a performance of over a billion in 2025 alone, which was its best performance to date. The company expected continued growth as demand for crypto-backed credit increased across global markets.

The lender had already expanded its operations with a debt-based funding round led by Sygnum before the new involvement from Tether. Ledn was a registered company in the United States and kept expanding its services and keeping its focus on bitcoin only. The company had attracted over $104 million in its funding rounds, including $100 million in the 2021 bull market.

Ledn aimed to triple its 2024 lending levels. The company viewed the participation of Tether as support for its long-term plan to broaden global credit access. Tether recently partnered with Rumble and revealed plans to launch Bitcoin tipping for creators by mid-December. The leadership anticipated rising interest in bitcoin-focused financial tools as more users explored options beyond traditional lenders.

Bitcoin Lending Trails Other Networks but Shows Momentum

Bitcoin-backed credit remained smaller than lending activity involving Ethereum, Solana, and several other networks. Many holders avoided depositing bitcoin due to its high value and preference for long-term storage. Ledn attempted to address this barrier with controlled liquidation procedures designed to reduce risk during volatility.

The broader bitcoin-based DeFi sector reported around $6.8 billion in locked value. Activity remained fragmented because many protocols relied on wrapped versions of bitcoin instead of native assets. The dispersion limited clear oversight of actual collateral levels.

Aave continued to hold the largest amount of wrapped bitcoin, with $4.15 billion in collateral and $2.44 billion in available liquidity. Ledn’s rapid expansion placed it closer to levels seen on major platforms, signaling increasing participation in bitcoin-secured borrowing.

Sector Outlook Points to Continued Expansion

The failure of multiple lenders in 2022 changed the crypto-backed lending landscape. Cantor Fitzgerald announced plans to launch a $2 billion Bitcoin-backed lending platform last year. Ledn was among the few companies which survived that time because of its simplified version of bitcoins. Its recent growth, combined with new backing from Tether, positioned the lender for broader international reach as demand for secure crypto-backed credit services increased.