Tether aims to reduce secured loans in its reserves to zero in 2023. The move is most likely in response to a WSJ report earlier this month alleging that these loans were risky. WSJ report asserted that Tether may not have enough liquid assets to pay redemptions in a crisis.
In response to the most recent FUD, the world’s largest stablecoin issuer, Tether, has reiterated that the secured loans held in its reserves are overcollateralized and covered by extremely liquid assets.
Tether claims to have prioritized transparency, accountability, and operational excellence above all else, unlike countless parties that have gone bankrupt or are facing bankruptcy risks on the back of widespread fraud, leverage, and bad risk management.
It has pledged to eventually stop the practice of lending out funds from its reserves, recognizing that it is mission critical to restore faith in the crypto market. In addition to dismissing the recent cycle of Tether FUD that’s hitting the rumor mill, Tether is planning to reduce secured loans in its reserves to zero by the end of 2023.
This decision is fueled by their unwavering commitment to serving the global audience that has consistently supported them at every step of the way.
Tether assures that it will continue to show 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 them for close to a decade.
Also Read: Tether hit back at Media FUD regarding Rising Loan risk
