Tether announced that it injected between $40 million and $50 million into Ledn, valuing the bitcoin-backed lender at about $500 million. The deal ties the world’s largest stablecoin issuer to a leading consumer Bitcoin-backed lending platform and signals a strategic move to expand stablecoin usage in collateralized credit markets.
The announcement said Tether’s capital commitment amounted to roughly $40–$50 million and set Ledn’s valuation at approximately $500 million. Ledn reported that by the third quarter of 2025 it had originated $392 million in loans—nearly matching the firm’s total for all of 2024—and that year-to-date originations in 2025 had surpassed $1 billion.
Cumulatively, Ledn has originated more than $2,8 billion in Bitcoin-backed loans since inception, and the company reported annual recurring revenue above $100 million.
Those figures were provided in the firms’ announcements and could not be independently verified by this outlet. The report framed the investment as more than a passive stake: Tether positioned the move as an effort to deepen real-world financial infrastructure and to integrate its stablecoin into Bitcoin-backed lending flows.
Market implications for desks and managers
For traders and asset managers, the transaction is relevant on two operational fronts. First, a Tether-backed push into BTC-collateral lending can shift stablecoin liquidity into consumer lending channels, altering funding availability for bitcoin-backed loans. Second, Ledn’s accelerating origination run-rate and >$100 million ARR suggest growing scale in a segment that remains sensitive to funding and rate conditions.
From a risk perspective, desks should note that growing loan origination implies higher exposure to collateral-price moves and funding-cost swings. If stablecoin supply starts to tilt toward lending platforms, hedging demand in derivatives markets—basis, funding and options skew—could adjust accordingly.
Managers monitoring liquidity should consider how concentrated strategic stakes reshape counterparties and balance-sheet depth in the crypto credit layer.
Investors are now watching whether Ledn can sustain its 2025 origination pace and how the Tether tie-up changes stablecoin flows into bitcoin-backed lending.
Those outcomes will determine whether the transaction meaningfully alters funding conditions for BTC-collateralized credit and how market participants hedge the associated risks.
