Tether has consolidated its influence in the digital financial sector through a new strategic investment in Ledn, capitalizing on the current boom in Bitcoin-backed loans. According to Paolo Ardoino, CEO of the stablecoin issuing company, this significant alliance seeks to strengthen real-world financial infrastructure, allowing users to efficiently unlock credit without the need to sell their digital assets, thus promoting self-custody models.
The numbers behind this deal are revealing, as Ledn has originated more than $2.8 billion in credit since its launch, cementing its leadership position in the market. The platform has already issued over $1 billion in 2025 alone, representing its strongest year to date, nearly equaling its entire 2024 volume in a single quarter with $392 million. Furthermore, its annual recurring revenue now exceeds $100 million, evidencing robust institutional and retail demand seeking immediate liquidity.
This move occurs in a context of recovery following the collapse of previous lenders due to reckless risk practices and toxic collateral during the last bear market. Therefore, the sector’s economy is shifting towards much safer structures, backed by the impressive financial strength of Tether, which reported more than $10 billion in net profit this year. The firm has also increased its excess reserves to $6.8 billion, currently positioning itself as one of the largest foreign holders of US debt.
Are We Facing a New Era of Institutional Maturity?
The impact of this collaboration goes beyond immediate figures, signaling a sustained growth trend for the crypto-collateralized credit segment over the coming decade. This specific niche is forecast to grow from the current $7.8 billion to exceed $60 billion by 2033, driven by stricter risk management. Adam Reeds, co-founder of Ledn, confirmed that his loan book is on track to triple compared to 2024 levels, validating the voracious appetite of investors for predictable liquidity.
Finally, the credit sector is showing renewed vital signs with competing platforms integrating new protocols and regulators adjusting regulations to protect users from systemic risks. As rules tighten in key jurisdictions like South Korea, the industry is expected to prioritize transparency and capital safety over excessive leverage. The strategic alliance between Tether and Ledn could be the catalyst needed to standardize resilient lending models globally.
