Tether has announced that it will eliminate secured loans by 2023.
About the Description of Tether
Tether, the world’s largest stablecoin issuer, recently made an official statement against the growing speculation that increasing secured loan amounts could lead to the decline of Tether. According to the statement, Tether has decided to reduce its credit risk to zero by 2023.
“Tether is announcing starting from now, through 2023, it will reduce secured loans in Tether’s reserves to zero,” Tether said in a statement.
The statement made by Tether shows the openness, responsibility and operational superiority of the company, while also strengthening its defense against threats. The company aims to maintain its position and functioning in the sector, especially in contrast to crypto organizations that have been facing bankruptcy, fraud and excessive debt, which have been on the agenda recently.
Response to The Wall Street Journal
In response to a Wall Street Journal article claiming that the stablecoin operator’s expanding loans would make it difficult to pay back loans issued in the event of a possible crisis, he promised to remove all secured loans to gain investor confidence.
In addition, Tether claimed that as of September 30, it was issuing debt with $ 6.1 billion, or only 9% of its total assets. Tether’s total assets exceeded $68 billion in the third quarter alone.
Although Tether has previously promised to provide borrowers with highly liquid access to these loans, it plans to shelve them due to too many recent negative events and current market conditions.
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