Stablecoin

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 Tether said the new loans were made at the request of some of its long-standing partners, and it plans to cut it down to zero by 2024. 
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 Tether, the largest stablecoin issuer in the crypto market, has seen a rise in its stablecoin lending, or secured loans, in 2023, despite the firm having announced it will cut&nbsp;such loans down to zero in December 2022.&nbsp; 
 In the company’s latest quarterly report, Tether noted that its assets included $5.5 billion of loans as of June 30, up from $5.3 billion in the previous quarter. A Tether spokesperson told&nbsp;The Wall Street Journal&nbsp;(WSJ) that the recent rise in stablecoin lending was due to a few short-term loan requests from clients with whom the firm has “cultivated longstanding relationships.” The spokesperson also said the company plans to cut such loans to zero by 2024. 
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 <figcaption style="text-align: center;"> Tether stablecoin loans on the rise in 2023. Source: The Company 
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 Stablecoin <a rel="noopener noreferrer nofollow" title="loans" href="https://thebittimes.com/tag/loans.html">loans</a> had become a popular lending product for Tether, allowing customers to borrow USDT from Tether in return for some collateral. However, these secured <a rel="noopener noreferrer nofollow" title="loans" href="https://thebittimes.com/tag/loans.html">loans</a> were always shrouded in controversy due to a lack of transparency on the collateral and the borrowers. 
 A WSJ report&nbsp;in December 2022 raised concerns about the products and claims that the <a rel="noopener noreferrer nofollow" title="loans" href="https://thebittimes.com/tag/loans.html">loans</a> were not fully collateralized. The WSJ questioned Tether’s ability to meet redemption requirements in times of crisis. 
 Related:&nbsp;Crypto Biz: You can’t stop the Tether FUD 
 Tether addressed&nbsp;the controversies in 2022 before announcing its plan to eliminate secured <a rel="noopener noreferrer nofollow" title="loans" href="https://thebittimes.com/tag/loans.html">loans</a> in 2023. At the time, the <a rel="noopener noreferrer nofollow" title="stablecoin" href="https://thebittimes.com/tag/stablecoin.html">stablecoin</a> issuer called the concerns around secured <a rel="noopener noreferrer nofollow" title="loans" href="https://thebittimes.com/tag/loans.html">loans</a> “FUD” and claimed the <a rel="noopener noreferrer nofollow" title="loans" href="https://thebittimes.com/tag/loans.html">loans</a> were overcollateralized. 
 The recent rise in secured <a rel="noopener noreferrer nofollow" title="loans" href="https://thebittimes.com/tag/loans.html">loans</a> for Tether comes amid growing market dominance and profit for the firm. Tether reported $3.3 billion in surplus reserves up from just $250 million last year in September. Cointelegraph reached out to Tether for comments but has not yet received a response. 
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Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/tether-2023-stablecoin-loans-rise-despite-downsizing-announcement-in-2022-tbt63502.html">https://thebittimes.com/tether-2023-stablecoin-loans-rise-despite-downsizing-announcement-in-2022-tbt63502.html</a>

Tether 2023 stablecoin loans rise despite downsizing announcement in 2022

TheBitTimes

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