Tether announced today that it has invested in Bitcoin lending company Ledn. Since its inception, Ledn has issued over $2.8 billion in Bitcoin-backed loans, with more than $1 billion expected in 2025 alone. The company’s current annual recurring revenue (ARR) has surpassed $100 million.https://t.co/bBk6DvBipq ...

Core Insights - Ledn has achieved over $1 billion in loan originations in 2023, marking its strongest quarter to date [1] - The company issued $392 million in BTC-backed loans in Q3 2023, nearly matching its total loan volume for all of 2024 [1] - Ledn reported an annual recurring revenue (ARR) of $100 million [1] Company Performance - The growth in loan originations reflects increasing demand for credit products secured by bitcoin, as users prefer not to cash out their holdings [2] - Ledn transitioned to a bitcoin-only loan model in May 2023, removing support for ether (ETH) loans, which contributed to the growth [2] - The total value of Ledn's outstanding loan book was $836.2 million at the end of September 2023, with an average loan-to-value ratio of 42.7% [3] Service Offering - Ledn provides fully collateralized loans where BTC remains in custody throughout the loan duration, appealing to long-term holders seeking liquidity without losing exposure to BTC [4] - The company is recognized as the third-largest centralized lender after Tether and Galaxy (GLXY) according to a Galaxy Research report [4]

Funding and Investment - Meanwhile, the first life insurance company to offer policies entirely in Bitcoin has raised $82 million in a new funding round led by Bain Capital and Haun Ventures, bringing its total funding for 2025 to $122 million after a successful Series A that raised $40 million in April [1][2] - Other participants in the latest funding round include Apollo, Framework Ventures, Fulgar Ventures, Northwestern Mutual, Pantera Capital, and Stillmark [2] Company Operations - Meanwhile operates as a fully licensed and regulated life insurance carrier in Bermuda, with payouts denominated in Bitcoin, allowing beneficiaries to receive Bitcoin instead of fiat currency upon policy execution [3] - The company is also one of the world's largest Bitcoin lenders, providing both institutional and policyholder lending services [4] Policyholder Benefits - Individuals with policies older than two years can borrow against their policies to receive Bitcoin at fair market value, with the option to sell the new Bitcoin immediately if it appreciates [5] - Policyholders have the choice to either repay the loan or allow it to be covered by their policy's death benefit [5] Market Context - Bitcoin reached a new all-time high on October 6, with US spot Bitcoin ETFs seeing record inflows, marking their second highest level since inception [6] - The price of Bitcoin started the month around $117,000, peaking at $126,198 on October 6 before a slight pullback, attributed to investors seeking safe haven amid global uncertainty [7]