Tether Invests In Crypto Credit Platform Ledn To Capture Rising Demand For Bitcoin-Backed Loans

• Tether said it invested in Ledn because it is “well-positioned” to expand credit access for both retail and institutional clients amid surging demand. 
• The USDT issuer said it expects the crypto-backed lending market to grow from $7.8 billion in 2024 to over $60 billion by 2033.
• CEO and Co-Founder of Ledn said the firm’s loan book is on track to nearly triple from 2024 levels.

Tether (USDT), issuer of the largest stablecoin in the world, announced on Tuesday a strategic investment in Bitcoin (BTC)-backed lending platform Ledn. 

The company said Ledn, which operates in centralized lending, is “well-positioned” to expand credit access for both retail and institutional clients amid surging demand. It cited a Data Intelo report projecting the crypto-backed lending market to grow from $7.8 billion in 2024 to over $60 billion by 2033.

By allowing borrowers to use Bitcoin as collateral rather than selling it, Tether said it is aiming to provide new pathways for wealth preservation and long-term adoption of crypto assets like BTC.

“This approach strengthens self-custody and financial resilience, while creating real-world use cases that reinforce the long-term role of digital assets as essential pillars of a more inclusive global financial system,” said Tether CEO Paolo Ardoino.

Loan Book Growth

Adam Reeds, co-founder and CEO of Ledn, said the firm’s loan book is on track to nearly triple from 2024 levels. “We expect demand for Bitcoin financial services to continue soaring, and this collaboration with Tether ensures that Ledn remains well-positioned to lead as the market continues to evolve and grow. We are excited for the opportunities that lie ahead to collaborate and innovate in this space,” Reeds said.

Bitcoin’s price is down more than 3% in the last 24 hours, with retail sentiment on Stocktwits trending in ‘bearish’ territory over the past day. The apex cryptocurrency dipped as low as $89,500 earlier in the session. 

Tether Going Up Against Big Banks

One of the largest banks in the U.S., JPMorgan Chase (JPM), is also planning to let clients use Bitcoin (BTC) and Ethereum (ETH) as collateral for loans by the end of the year. 

Traditionally, stablecoins like USDT have been the go-to collateral for crypto-backed loans due to their price stability and liquidity. However, the entry of established financial giants like JPMorgan, allowing other tokens to be used as collateral, is changing that dynamic.

Tether’s stablecoin, USDT, currently has a market capitalization of $183 billion, according to data on DefiLlama. The company has also launched USAT, which is also a dollar-backed stablecoin, but specifically meant to comply with U.S. regulations after the passage of the GENIUS Act earlier this year. 

Read also: BTC Price Rebounds To $91,000 After $1 Billion Crypto Liquidation Wave

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