Stablecoin issuer Tether invests in Bitcoin collateralized lending platform Ledn as the digital asset credit market rebounds strongly from the Celsius crisis.
Tether , the largest issuer of the USDT stablecoin, has announced a strategic investment in Ledn, a platform that offers Bitcoin-backed consumer loans. The move comes amid a strong recovery in the crypto lending market, with major Wall Street financial institutions increasingly participating.
The investment, which has not yet been disclosed in terms of value, is aimed at developing a financial infrastructure that allows businesses and individuals to access Bitcoin-based liquidation and credit without liquidating their assets. Ledn, founded in 2018, currently serves users in more than 100 countries with professional custody, risk management, and liquidation solutions. In the third quarter of 2025, the company reported disbursing $392 million in Bitcoin-backed loans, reflecting the growing real-world demand in the market.
Ledn co-founder and CEO Adam Reeds said the company expects demand for Bitcoin-based financial services to continue to grow. The announcement comes shortly after Tether announced it was XEM a $1.15 billion investment in Germany-based robotics company Neura, signaling the stablecoin giant's strategy to diversify its portfolio.
Cryptocurrency Lending Market Recovers From Crisis
Bitcoin and crypto-collateralized loans are showing clear signs of recovery globally, three years after the collapse of Celsius, a centralized crypto lending platform, in July 2022. This event shocked the market and caused many investors to lose faith in the digital asset lending model.
However, 2025 saw a strong comeback for the segment with the participation of traditional financial institutions. In May, Cantor Fitzgerald partnered with Maple Finance and FalconX to complete the first Bitcoin-collateralized loan transaction, marking a deeper involvement of Wall Street firms in the crypto asset credit market.
In July, Block Earner launched a Bitcoin-backed home loan product in Australia, a country facing unaffordable housing costs. Customers can borrow up to 50% of the property value in cash, with digital assets secured through Fireblocks. Also this month, the US House of Representatives introduced a bill requiring federal mortgage agencies to recognize crypto assets held on regulated exchanges as part of a borrower’s financial profile during home loan underwriting.
A February report from Canadian law firm Osler, Hoskin & Harcourt LLP estimated the Bitcoin mortgage lending market could grow to $45 billion by 2030, reflecting the segment's impressive growth prospects amid increasingly mature legal and technological infrastructure.
