Will Tether finally get rid of all doubts with this step?

With concerns growing about Tether’s growing number of secured loans and a possible reason for the stablecoin issuer’s demise, Tether made an official announcement today. The crypto firm now plans to minimize its credit exposure to zero by 2023.

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Tether's 2023 goal

According to your notification Tether's internal team prioritizes transparency and accountability to protect itself from any disaster.

After The Wall Street Journal reported that the stablecoin operator's growing list of loans would make it impossible to repay buybacks in the event of a crisis, Tether announced that it would remove all secured loans from its balance sheet in 2023.

In response to the latest WSJ reports on Tether, the company states that:

Tether is managed professionally and conservatively, which will again be reflected in the successful completion of the credit transaction without losses

The announcement further states that “secured loans held in reserves are overcollateralized and backed by extremely liquid assets.”

$6.1 billion in loans

According to the company, as of September 30, its loans amounted to $6.1 billion, or 9.1% of Tether’s total assets. In the third quarter, the group’s consolidated total assets even exceeded $68 billion.

Tether previously claimed to ensure that borrowers were provided with highly liquid collateral for these loans, but now the operator apparently intends to remove them altogether.

This news comes after the collapse of cryptocurrency exchange FTX and more recent rumors surrounding Binance’s partial reserves, leading to ongoing fear among the crypto community.

Tether also recently introduced Chinese Yuan (CNHT) to its growing family of stablecoins, which includes USDT,EURT and MXNT.

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.