Reported WSJ, Tether has resumed lending its USDT to customers. The report cited that the move comes less than a year after Tether had announced its intention to wind down the practice.
Tether stated that the decision to resume lending was prompted by short-term loan requests from longstanding clients and the company commit to eliminate these loans by 2024. Tether's goal is to prevent a significant depletion of customer liquidity or to prevent customers from selling collateral at potentially unfavourable prices and potentially incurring losses."
Tether's current reserve assets consist mainly of cash and short-term U.S Treasury Bills. The secured loans exposures have been a concern among crypto investors as these loans have the potential risk of default and could potentially destabilise USDT.
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