Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Tether Invests In Ledn To Expand Crypto Credit Access
Financing | December 12, 2025
Image: Freepik/rawpixel.com
A Strategic Deal Linking Digital Dollars With Collateral-based Credit
On November 18 2025 Toronto founded fintech Ledn announced that Tether made a strategic investment in the company. Tether operates the largest stablecoin in the world and Ledn built a lending model that gives people access to credit without selling their bitcoin. The deal connects fast moving digital dollars with a digital asset collateral approach that long term holders already use. It also comes at a time when stablecoins support a growing share of global payments and when demand for simple credit continues to rise.
FT Partners advised the Ledn-Tether transaction, as noted in the transaction overview outlining Ledn's lending history and market reach, facilitating more than $10 billion in loan originations across more than 100 countries. The company uses fully custodied collateral and publishes ongoing Proof of Reserve reports. Tether gains a lender with a clear and established structure. Ledn gains a partner with global reach.
See: Ep20-Jan 11: Bitcoin Backed Loans and 2x Credit – Putting Your Crypto to Work
Adam & Mauricio, Ledn Co-Founders:
"This is a pivotal moment for Ledn. This strategic partnership is an affirmation of the disciplined, client-first approach we have championed for years. We are laser-focused on continuing to help our clients succeed on their bitcoin journey. This investment is perfectly aligned to allow us to do exactly that, providing an even better service at an even greater scale."
Why Stablecoins And Credit Are Converging
CoinGecko's stablecoin tracking shows that major stablecoins such as USDT and USDC post large 24 hour trading volumes and together account for significant market value and activity with the total stablecoin marketcap currently at $314 billion. This reflects widespread use of stablecoins for transfers, payments, and liquidity across crypto markets.
People use them for payments and savings because they move faster than many traditional banking channels and remain easy to access. Global crypto ownership reached about 708 million people by the first half of 2025, according to Crypto.com’s Crypto Market Sizing H1 2025 report. Many of these users live in places where access to stable dollars is limited. For them a digital dollar that moves quickly is practical, not speculative.
A growing share of institutional credit now uses tokenized structures on blockchain. For example, Figure launched Democratized Prime, a platform that lets institutional and retail users lend and borrow with tokenized collateral, and the firm also received SEC approval for its public yield stablecoin YLDS. These developments show how credit activity is moving on chain in regulated settings, and point to a broader move toward collateral based lending with digital assets.
See: Crypto Meets Wall Street as SEC Approves Yield Stablecoin
People with long term bitcoin holdings often prefer to borrow against their assets instead of selling. Bitcoin’s liquidity and defined collateral make this possible. Ledn scaled its lending model to meet this demand and has originated more than $10 billion in loans worldwide.
Tether’s stablecoins function as the funding that makes these loans usable. When you put the two together, you get a streamlined simple structure with bitcoin as collateral and stablecoins as the way money moves. It's a setup that reflects how people already operate.
Canadian Angle
Ledn began in Toronto but moved its operations abroad to work under a clear rule set. The company received approval through the Cayman Islands VASP regime, which provides defined expectations for custody and disclosure.
Of course, the situation raises a direct question for Canada. If a successful Canadian founded fintech leaves the country to grow, what does that mean for Canada’s position in digital finance and ability to compete globally?
Canada has taken a step toward addressing this gap by publishing the first draft of the Stablecoin Act. The draft proposes federal rules for fiat backed stablecoin issuers, including requirements for reserve assets, redemption rights, disclosures, and oversight by the Bank of Canada.
Read: CSA Reminds Crypto-backed Lenders of Securities Law Duties
Clear rules matter because stablecoins now support real financial activity, not just trading. If Canada builds a workable framework, it could help local fintechs serve users who rely on digital dollars and collateral based credit without leaving the country to find clarity.
Conclusion
People want access to dollars that move quickly. They want credit without losing long term exposure. They want clear custody and simple structures they can understand. Ledn has shown that this model works at scale. Tether brings liquidity and distribution.
The deal shows how stablecoins and bitcoin backed credit are becoming part of everyday financial activity and gives Canada a reason to consider how its policy choices are impacting the growth of fintech in Canada.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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