Tether Resumes Issuing USDT Loans
Tether Holdings, known for its stablecoin USDT, is back in the lending business less than a year after planning to stop.
Tether Holdings, the company behind the stablecoin USDT, has started lending coins to customers again. This decision comes less than a year after the company said it would stop lending.
New loans are being issued, according to a spokeswoman for Tether. The company's recent financial update shows that it now has $5.5 billion in loans, up from $5.3 billion in the last report.
Some people are worried about this move. Tether calls these loans "secured," but doesn't give much information about who is borrowing or what they are using as collateral. Loans can be riskier than other assets like Treasury bills.
Alex Welch, a spokeswoman for Tether, said they started lending again because of short-term loan requests from regular customers. She also said Tether plans to end all loans by 2024 to avoid big financial losses for its customers.
