Stablecoin Issuer's Loans Grow in 2023
Despite announcing a plan to eliminate stablecoin loans in December 2022, Tether, the largest stablecoin issuer in the crypto market, has seen a rise in its lending activities in 2023.
Quarterly Report Reveals Loan Growth
In its latest quarterly report, Tether revealed that its assets included $5.5 billion of loans as of June 30, up from $5.3 billion the previous quarter.
Short-Term Loan Requests from Longstanding Clients
Tether explained that the recent increase in stablecoin lending was due to a few short-term loan requests from clients with whom the firm has cultivated longstanding relationships.
Controversy Surrounding Secured Loans
Secured loans, which allowed customers to borrow USDT from Tether in exchange for collateral, were always controversial due to a lack of transparency regarding the collateral and borrowers.
Tether Addresses Concerns
Tether addressed concerns about secured loans, calling them "FUD" or fear, uncertainty, and doubt, and claiming that the loans were overcollateralized.
Growing Market Dominance and Profit
Despite the controversy, Tether continues to dominate the market and has reported $3.3 billion in surplus reserves, a significant increase from $250 million in September last year.
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