Stablecoin issuer Tether invested between $40 million and $50 million in Ledn in November, according to a person familiar with the transaction. The deal valued the lender, which offers bitcoin collateral loans and services in fiat and stablecoins, at about $500 million. However, when the companies announced a “strategic investment” at the time, they withheld the financial terms. The price range and valuation were disclosed by a person with knowledge of the matter who requested anonymity because the information is private.
Moreover, neither Ledn nor Tether responded to requests for comment by publication time, leaving the strategic rationale to be inferred from the firms’ broader activities. The investment gives Tether a stake in a crypto financial services company built around yield and credit products. Ledn lets individuals and institutions earn interest on, borrow against, and manage their digital assets, with a particular emphasis on Bitcoin. In May 2023, the firm, which is registered in the Cayman Islands, said it was moving to a bitcoin-only model to simplify its product suite and sharpen its focus.
That said, the fresh backing effectively makes the November deal a significant Ledn funding round led by one of the sector’s most profitable issuers. The valuation also highlights ongoing investor appetite for infrastructure that supports secured lending and yield generation in a market still rebuilding from the last crypto credit cycle. FT Partners served as financial adviser to Ledn on the strategic investment from Tether. In summary, the undisclosed November deal at a $500 million valuation adds a key crypto lending platform to the stablecoin issuer’s growing portfolio of strategic holdings.
Stablecoin issuer Tether invested between $40 million and $50 million in Ledn in November, valuing Ledn at about $500 million, according to people familiar with the transaction. The parties described the move as a strategic investment, but terms were not disclosed. Ledn, which offers bitcoin-collateral loans and other services in fiat and stablecoins, is transitioning to a bitcoin-only model to simplify its product line. The investment gives Tether a stake in a crypto financial services company built around yield and credit products.
That investment underscores growing investor appetite for infrastructure that supports secured lending and yield generation as the crypto market recovers. The November funding round is significant, led by one of the sector’s most profitable issuers. Tether has been expanding its M&A and strategic deals under CEO Paolo Ardoino, backed by strong profits from Treasuries and its bitcoin strategy. This transaction fits into a broader wave of stablecoin issuer investments that link fixed-income revenues to higher-growth crypto and fintech ventures.
FT Partners served as financial adviser to Ledn on the strategic investment from Tether. The undisclosed November deal at a $500 million valuation adds a key crypto lending platform to the stablecoin issuer’s growing portfolio of strategic holdings. Stablecoin issuer Tether invested between $40 million and $50 million in Ledn in November, valuing the bitcoin-focused lender at about $500 million, according to people familiar with the transaction. The parties described the move as a strategic investment, but terms were not disclosed.
Ledn offers bitcoin-collateral loans and services in fiat and stablecoins and is moving to a bitcoin-only model to simplify its product line. The investment gives Tether a stake in a crypto financial services company built around yield and credit products, underscoring growing demand for infrastructure that supports secured lending and yield generation as the crypto market recovers. The November funding round is significant, led by one of the sector’s most profitable issuers. FT Partners served as Ledn’s financial adviser on the strategic investment from Tether, which fits into a broader wave of stablecoin issuer investments that link fixed-income revenues to higher-growth crypto and fintech ventures.
Leave a Reply