Tether Expands role in digital lending with investment in Bitcoin lender Ledn

Stablecoin issuer Tether has made a strategic investment in Bitcoin lender Ledn. The company disclosed this in an official announcement, a move that demonstrates its efforts to diversify.

Tether has invested in a wide range of assets, from social media and AI to gold and sports, utilizing its billions in profits from stablecoins.

Tether Calls Deal Proof of Commitment to Real-World Financial Infrastructure

Tether described its investment in Ledn as evidence of its commitment to building real-world credit infrastructure. It noted that Ledn provides access to credit for individuals and businesses without then selling their digital assets.

Although it did not disclose the value of the deal, Tether’s investment is a bet on digital assets lending. The stablecoin issuer cited data showing that the Bitcoin-backed lending sector could be worth $60 billion by 2033, from $7.8 billion in 2022.

Speaking about the deal, Tether CEO Paolo Ardoino stated that it reflects the company’s belief in empowering individuals through financial innovation.

He said:

“Together with Ledn, we are expanding access to credit without requiring individuals to sell their digital assets. This approach strengthens self-custody and financial resilience, while creating real-world use cases that reinforce the long-term role of digital assets.”

Meanwhile, Ledn CEO Adam Reeds described the deal as a coming together of two market leaders. Ledn provides Bitcoin-backed loans for consumers and businesses and has grown to become one of the biggest lenders in the space.

The Toronto-based company raised $70 million in its Series B funding round in 2021, valuing it at $540 million. It also secured a $50 million Bitcoin-backed loan from Swiss crypto bank Sygnum in 2024 to expand its retail operations.

Since its launch, Ledn has originated over $2.8 billion in loans. More than $1 billion of those loans originated in 2025 alone, showing its remarkable performance in recent years. It is now reporting over $100 million in annual recurring revenue.

Strategic Investment to Expand Tether Lending Business

Meanwhile, the deal also allows Tether to expand its stake as a lending service provider. Although the company is widely known for stablecoin issuance, Tether had previously offered loans denominated in USDT to institutional customers.

The company later announced in December 2022 that it would stop the practice amidst the crypto market crisis. However, a Wall Street Journal report indicates that the company continued to offer these loans in 2023. It eventually launched the Trade Finance unit in 2024 in a bid to separate its lending services from its stablecoin business.

Interestingly, Ardoino said a few days ago in an interview that Tether wants to start lending to commodities traders. He added that the company has already extended over $1.5 billion in credit to commodities traders.

With the Ledn deal, Tether could finally have an already-built infrastructure to leverage for its own lending business. Still, it is a sign of the company’s efforts to diversify its operations. While it remains the leading stablecoin issuer, the El Salvador-based firm continues to explore new sectors for investment.