TechFlow news, according to The Wall Street Journal, Tether has resumed offering stablecoin loans to clients, despite stating less than a year ago that it would gradually reduce such practices. According to the latest quarterly financial report, Tether’s reserve assets included $5.5 billion in loans as of June 30, up from $5.3 billion in the previous quarter. Tether spokesperson Alex Welch confirmed the company has issued new loans.
Welch said: “In the second quarter of 2023, Tether received short-term loan requests from several long-standing clients, and we decided to fulfill these requests. These loans will be phased out by 2024. The company's goal is to prevent significant liquidity shortfalls for clients or stop them from selling collateral at potentially unfavorable prices, which could lead to losses.”
