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Stablecoin giant Tether announced on the 18th that it has made a strategic investment in Ledn, a leading Bitcoin-collateralized lending platform.
https://twitter.com/Tether_to/status/1990785750724382900
Founded in Canada, Ledn provides services for BTC holders who want to access liquidity without selling their Bitcoin, a feature especially attractive for long-term investors seeking to avoid taxable events from asset sales.
Since its founding in 2018, the company has processed over USD 2.8 billion in cumulative loans and now serves customers in more than 100 countries.
Bitcoin-Backed Lending for Liquidity Without Selling
Ledn’s signature service allows users to secure USD liquidity while maintaining full ownership of their Bitcoin. Tether highlighted this model as a key reason for its investment.
Key features of Ledn’s BTC-backed loans include:
- Minimum collateral: USD 1,000 worth of BTC
- No credit checks required
- Loan-to-value (LTV): 50%
- Term: 12 months, with extension options
- No monthly payments required
- Borrowers can repay anytime without penalty
This structure enables BTC holders to unlock capital efficiently while avoiding forced liquidation or tax-triggering sales.
A Galaxy Research report from April identified Ledn as the third-largest centralized lending provider, behind Tether and Galaxy.
Ledn Shifts to a Bitcoin-Only Strategy to Reduce Risk
In May, Ledn implemented a strategic pivot by phasing out its Ethereum (ETH) lending services and focusing exclusively on Bitcoin-related offerings.
The company also discontinued its yield-generating model, which involved lending customer assets to third parties. It has since transitioned to a full custody framework, eliminating credit risk and reinforcing client protection.
Ledn CEO Adam Reeds said the rising loan volume reflects growing demand for responsible BTC-collateralized credit and the company’s commitment to transparency.
The firm was one of the few survivors of the 2022 crypto market turmoil, when many competitors collapsed. Its conservative operation has since positioned it as a trusted entity within the market.
Industry observers note that Ledn’s risk-managed approach could contribute to the healthy development of the wider crypto-collateral lending ecosystem.
