2023-09-21 16:40:23
© Reuters. Tether loans rise in 2023 despite the announcement of reduction in 2022
the largest issuer of stablecoins in the cryptocurrency market, has seen an increase in its lending in the form of stablecoins or collateralized loans in 2023, despite the company announcing that it would reduce these loans to zero in December 2022.
Venmo users can now access the stablecoin PayPal (NASDAQ:) USDIn the company’s most recent quarterly report, Tether noted that its assets included $5.5 billion in loans as of June 30, compared to $5.3 billion in the previous quarter. A Tether spokesperson told the Wall Street Journal (WSJ) that the recent surge in stablecoin lending was due to some short-term loan requests from customers with whom the company has “cultivated long-standing relationships.” The spokesperson also stated that the company plans to reduce these loans to zero by 2024.
Tether stablecoin loans on the rise in 2023. Source: The CompanyLending in the form of stablecoins had become a popular lending product for Tether, allowing customers to borrow USDT from Tether in exchange for some collateral. However, these secured loans were always mired in controversy due to the lack of transparency about the collateral and borrowers.
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