Tether announced investment in Ledn! The Bitcoin mortgage market is expected to soar to $60 billion by 2033.

Stablecoin giant Tether invests in Ledn, which is one of the world's largest Bitcoin collateral loan companies. Since its inception, Ledn has distributed over $2.8 billion in Bitcoin collateral loans, with projections to exceed $1 billion by 2025. A report by Data Intelo predicts that the crypto assets collateral loan market will rise from $7.8 billion in 2024 to over $60 billion by 2033.

Tether Bitcoin Collateral Loan Staking Track

(Source: Tether)

Tether, as the world's largest USD stablecoin USDT issuer, announced on November 18 that it has made a strategic investment in the Bitcoin collateral loan platform Ledn. This investment is not a random choice by Tether but an important step in its systematic layout of the real-world financial infrastructure strategy. Both parties will work together to promote a financial model that allows “borrowing money without selling coins,” bringing digital assets into the real financial infrastructure.

Bitcoin mortgage loans address the core pain points of cryptocurrency holders. Many long-term holders firmly believe in the long-term value of Bitcoin, but still need fiat liquidity in their daily lives. The traditional way is to sell Bitcoin for cash, but this incurs capital gains tax, misses out on future rise opportunities, and carries the risk of timing choices. Bitcoin mortgage loans provide a third option: pledge Bitcoin to a lending platform to obtain loans in USD or stablecoins, while continuing to hold ownership of Bitcoin and future profit rights.

Ledn's infrastructure includes advanced custody, risk management, and clearing systems, ensuring the security of clients' digital assets used for collateralized loans throughout the entire lifecycle of each loan. Custody security is the lifeline of crypto lending platforms, and the painful lessons from the collapse of several crypto lending platforms (such as Celsius and BlockFi) over the past few years have led to unprecedented demands for custody security in the market. Ledn has established industry-leading security standards by collaborating with professional custodians, using multi-signature cold wallets, and conducting regular audits.

Risk management systems are another core competency of Ledn. Bitcoin prices are highly volatile, and when the value of collateral drops, it may trigger liquidation risk. Ledn employs dynamic loan-to-value (LTV) management, adjusting collateral ratios based on market volatility and setting up a multi-layer warning mechanism. When the value of collateral approaches the liquidation line, the system automatically notifies borrowers to add more collateral or make partial repayments. This proactive risk management significantly reduces the occurrence of forced liquidation, protecting the interests of borrowers and the platform.

Tether CEO Paolo Ardoino stated: “Our investments embody Tether's philosophy that financial innovation should empower people. We have partnered with Ledn to expand credit channels without requiring individuals to sell their digital assets. This approach enhances the self-custody capability and financial resilience of personal assets, while also creating practical use cases that solidify the digital financial system as a more inclusive long-term financial foundation.”

Ledn's explosive growth verifies market demand

Since its establishment, Ledn has distributed over $2.8 billion in Bitcoin-backed loans, with expectations to exceed $1 billion in 2025, marking its best performance to date. This growth trajectory is astonishing, indicating that the Bitcoin-backed loan market is entering an explosive phase. In just the third quarter of 2025, Ledn issued $392 million in loans, nearly matching the total loan amount for the entire year of 2024. This acceleration demonstrates that market demand is experiencing exponential growth.

The company's current Annual Recurring Revenue (ARR) has exceeded 100 million dollars, highlighting the growing demand in the market for secure and reliable Bitcoin collateral loan products. An ARR of over 100 million dollars means that Ledn has crossed the threshold from a startup to a mature enterprise, and this scale of recurring revenue provides the company with a stable cash flow and a capital base for further expansion.

Ledn growth trajectory key data

Total Distribution: 2.8 billion USD (since establishment)

2025 Loan Distribution: Expected to exceed 1 billion dollars, with an annual rise rate close to 300%.

Q3 Quarterly Distribution: 392 million USD, close to the total amount for the entire year of 2024.

Annual Recurring Revenue: Over 100 million USD, verifying the sustainability of the business model.

From the performance data, it can be seen that Ledn's growth is not linear but exponential. In 2024, the total loan amount is expected to be around 400 million USD, and in Q3 of 2025 alone, it has already reached 392 million USD, with the annual forecast expected to exceed 1 billion USD. This explosive growth reflects several factors: the rise in Bitcoin prices has increased the value of collateral, institutional investors are starting to accept crypto collateral loans as a financing tool, and the market's acceptance of the “borrowing without selling coins” model is rapidly increasing.

Adam Reeds, co-founder and CEO of Ledn, stated: “This investment brings together two market leaders to shape the future of the Bitcoin mortgage market. Ledn's loan volume is expected to rise nearly three times compared to our expectations for 2024, proving that our decision to fully commit to Bitcoin is correct. We anticipate that the demand for Bitcoin financial services will continue to soar, and our partnership with Tether will ensure that Ledn remains at the forefront as the market evolves.”

explosive rise from 7.8 billion to 60 billion USD market

According to the outlook report on the Crypto Assets mortgage loan market released by Data Intelo, the industry size is expected to rise from approximately $7.8 billion in 2024 to over $60 billion by 2033 due to the growing demand for alternative loan solutions backed by Crypto Assets. These solutions can provide individuals and businesses with flexible liquidity options without the need to sell their digital assets.

From 7.8 billion to 60 billion USD, this represents an approximate 670% rise, with a compound annual growth rate (CAGR) of about 26%. This growth expectation is based on multiple driving factors. First, the holder base of Bitcoin and other Crypto Assets is rapidly expanding, and with the launch of Bitcoin ETFs and accelerated institutional adoption, more and more individuals and businesses will hold digital assets. Second, with the long-term upward trend in Crypto Assets prices, the unrealized gains of holders are increasing, but at the same time, liquidity demand has emerged, making mortgage loans the most ideal solution.

Third, traditional financial institutions are beginning to accept encryption collateral loans as legitimate financing tools. Against the backdrop of regulatory clarification, banks and lending institutions can participate in this market with greater confidence, which will greatly expand the funding sources on the supply side. Fourth, corporate financial management is starting to adopt Crypto Assets collateral loans. Many tech companies and crypto-native businesses hold large amounts of Bitcoin as balance sheet reserves, but operations still require fiat cash flow; collateral loans can provide operational funding without selling assets.

In light of Ledn's layout in the centralized lending sector and the accelerated growth of demand, it is expected to further expand its credit coverage in the retail and institutional markets. With the Bitcoin mortgage lending market potentially entering a significant growth phase, Ledn is well-prepared. The strategic partnership with Tether provides Ledn with financial support, brand endorsement, and business synergy. Tether has a large USDT user base and a global distribution network, which can help Ledn quickly expand its market.

By allowing borrowers to use Bitcoin as collateral instead of selling it, Ledn and Tether are paving new paths for wealth preservation, financial resilience, and the long-term application of decentralized technology. At the same time, Ledn's platform infrastructure makes it an ideal choice for the expansion and distribution of Tether assets in emerging markets. This bidirectional synergy will accelerate the expansion of both companies in their respective fields.