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Tether Invests in Bitcoin Loans Bigwig Ledn
Tether is expanding its foothold in bitcoin-backed credit markets.
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Tether is extending its role in BTC credit markets with a strategic investment in Ledn, one of the top global players in bitcoin-backed lending.
What's the Scoop?
- Credit Push: Tether (the world’s largest stablecoin issuer) has made an undisclosed strategic investment into Ledn, evidence of its deeper push into real-world credit markets powered by crypto collateral.
- Lending Surge: Ledn has originated over $2.8B in BTC-backed loans since launch, including more than $1B in 2025 alone. Ledn originated $392M in Q3 2025 alone, nearly matching its entire 2024 volume, while annual recurring revenue has climbed past $100M.
- Market Expansion: Crypto-backed lending is projected to jump from $7.8B in 2024 to more than $60B by 2033, setting the stage for a major crypto credit market expansion.
- Strong Alignment: Tether sees the partnership as a way to scale credit access without forcing borrowers to sell BTC, reinforcing self-custody and long-term asset ownership.
What's the Take?
Tether already uses its ability to freely mint dollars to extend credit against crypto collateral. According to Tether's latest reserve attestation dated October 31, 2025, its USDT stablecoin was 7.7% collateralized with "secured loans."
By investing in Ledn, Tether gains to increased access to BTC borrower demand, potentially facilitating the creation of new USDT against BTC-backed loans.