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Tether, the leading entity in the digital asset industry, has made a significant move into crypto-backed credit markets by investing in Ledn, a prominent provider of Bitcoin-backed loans.
This action coincides with a resurgence in the lending sector, which has already exceeded $1 billion in loan originations this year and is beginning to show signs of a wider recovery following the drastic downturn of 2022–2023.
Ledn Surpasses $2.8B in Bitcoin Loans as Crypto Lending Market Recovers
Since its inception, Ledn has issued over $2.8 billion in Bitcoin-backed loans, solidifying its status as a key player in the crypto credit market.
https://twitter.com/tether_to/status/1990785750724382900
The firm has already lent more than $1 billion in 2025 alone, marking its most successful year to date, and has nearly matched its total lending volume from 2024 in the most recent quarter with $392 million in Q3.
Its annual recurring revenue now surpasses $100 million, indicating increasing interest from both retail and institutional borrowers looking for liquidity without liquidating their Bitcoin.
Tether stated that the investment aligns with its long-term objective of developing financial infrastructure that enables users to access credit while retaining ownership of their digital assets.
Chief Executive Paolo Ardoino noted that the collaboration enhances the role of digital assets in traditional finance and supports self-custody models that many cryptocurrency users depend on.
Ledn’s platform features custodial protections, risk management protocols, and liquidation systems designed to safeguard users’ collateral throughout the duration of each loan.
This investment comes as the Bitcoin-backed lending market starts to grow again. According to DataIntelo’s projections, the broader crypto-collateralized credit sector is expected to expand from $7.8 billion in 2024 to over $60 billion by 2033.
The sector reached $90 billion in October and is currently valued at $65.87 billion.
Source: DefiLlama
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A significant portion of the industry’s recovery has been influenced by stricter risk management practices following the failures of Celsius, Voyager, BlockFi, Genesis, and other lenders during the previous bear market, a collapse fueled by imprudent lending, problematic collateral, and unsecured loans.
Ledn’s commitment to Bitcoin-backed products is bolstered by this transition toward more secure frameworks.
Co-founder and CEO Adam Reeds mentioned that the company’s loan portfolio is on track to nearly triple from 2024 levels, and that demand for Bitcoin financial services is rapidly increasing as investors seek more reliable forms of credit access across both centralized and decentralized platforms.
Tether’s investment also aligns with the company’s broader strategy to enhance its footprint in global financial markets.
In its most recent attestation, prepared by BDO, Tether reported over $10 billion in net profit for the year to date, along with $6.8 billion in surplus reserves.
The firm issued more than $17 billion in new USDT during Q3, raising the stablecoin’s circulating supply above $174 billion. Tether’s holdings in U.S. Treasuries reached a record $135 billion, positioning the company among the largest foreign holders of U.S. debt.
Lending Activity Reignites as Major Platforms Expand Services and Regulators Tighten Rules
The lending sector as a whole is witnessing renewed activity.
Crypto.com has recently started integrating Morpho, the second-largest DeFi lending protocol, into its platform, enabling users to borrow stablecoins against wrapped Bitcoin and Ether directly on its Cronos chain.
Morpho’s services, which currently hold over $7.7 billion in value, will be accessible even to U.S. users despite new limitations on stablecoin yield payments under the GENIUS Act.
Regulators are also adapting to the increased activity. South Korea introduced comprehensive guidelines in September that cap lending rates at 20% annually and prohibit leveraged products that exceed collateral value.
The regulations follow concerns regarding aggressive lending practices at major exchanges, where firms had begun offering unusually high borrowing limits before authorities stepped in.
The post Tether Dives Into Bitcoin-Backed Lending as Market Soars Past $1B in Loans appeared first on Cryptonews.
