USDT issuer Tether Limited has resumed lending in its own stablecoin a year after assurances that such practice would cease. The Wall Street Journal writes about this.
In February, the company committed to reducing its secured loans by the end of the year.
According to the latest reporting, the volume of loans issued for the second quarter increased from $5.3 billion to $5.5 billion.
The issuer does not disclose borrowers and collateral. The publication explained that Tether Holdings cannot be 100% confident in the return of funds and 100% coverage of the collateral.
“In the second quarter, we received several requests for short-term loans from clients with whom we have long-standing relationships. The company decided to satisfy these requests,” — Tether Holdings spokeswoman Alex Welch explained.
The loans will be repaid by 2024, the spokesman said. She declined to provide further details.
Tether previously reported $850 million in net profit in the second quarter. According to the document, 85% of USDT collateral comes from cash and cash equivalents.
In May, the company’s CTO, Paolo Ardoino, said that the issuer’s high profitability makes it possible to consider new business areas.
Later it became known that Tether invested $1 billion in a Bitcoin mining project in El Salvador. Subsequently, the issuer used $420 million to purchase chips from Nvidia in exchange for a 20% stake in the mining company Northern Data.
Let us recall that in March 2023, Tether announced the bias of WSJ journalists.
Three months earlier, the issuer called the publication’s article on USDT “the hypocrisy of the media sleeping at the wheel of information.”
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