Tether Addresses Worries Surrounding Secured Loans and Reveals Plans To Phase Them Out by 2023

In a post on December 13, Tether addressed the current media concern and uncertainty surrounding its secured loans.

Tether stated:

“In response to the most recent attack on Tether, the company has reiterated that the secured loans held in its reserves are overcollateralized and covered by extremely liquid assets.”

#Tether Addresses FUD Around Secured Loans, Reveals Plans to Reduce These to Zero in 2023https://t.co/nZcPr8RiF1

— Tether (@Tether_to) December 13, 2022

According to the firm, Tether’s secured loans function similarly to private banks lending to clients using backed collateral. Tether claimed that, unlike banks that rely on fractional reserves, its loans are fully insured by over 100%.

According to a December 1 Wall Street Journal report, Tether’s secured debt was 9% of its total assets as of September 30. The report also warned that if the loans caused a crisis, the stablecoin issuer might not have enough liquid assets to satisfy redemptions. 

Tether asserts that the secured loans held in its reserves are overcollateralized and covered by highly liquid assets, thereby refuting these claims.

Tether also added:

“We will continue to show Tether’s resilience through the most uncertain times, regardless of the story fabrications and disinformation concocted by Tether Truthers and clickbait headlines from mainstream media that have been consistently wrong about Tether, for close to a decade.”

Tether claims it is dedicated to developing and paving the path forward as the infrastructure that will power the future of global financial, decentralized communications, and information technology as this market expands and evolves.

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