Tether issued $11.6 billion of loans between 2019 and May 2021
Stablecoin issuer Tether issued $11.6 billion of collateralized loans between June 2019 and Might 2021, in keeping with paperwork launched this week by the New York Legal professional Common that relate to a authorized settlement.
Out of the 694 loans, 89% of the full quantity of loans was issued towards bitcoin as collateral, whereas 9% had ether as collateral. The remaining 2% was cut up between Tether Gold (XAUT) and unnamed securities. Tether obtained a cumulative complete of 450,000 BTC in collateral and 1.1 million ETH.
The paperwork additionally present that $8 billion of loans had been repaid throughout that interval.
“Tether has traditionally engaged in lending transactions – disclosed in our unbiased, third get together assurance attestations – to a choose group of bigger Tether prospects,” Tether stated in a statement earlier right now. It famous that the loans had been overcollateralized.
Tether reduces loans
In December 2022, Tether stated it was reducing secured and overcollateralized loans in its reserves to zero in the course of the course of 2023. “Tether is professionally and conservatively managed and this might be demonstrated as soon as once more by efficiently winding down the lending enterprise with out losses (since all loans are over-collateralized by liquid property),” it stated on the time.
The paperwork had been gathered by the NYAG in its investigation into Tether, which resulted in a February 2021 settlement and an $18.5 million wonderful. They had been launched after a freedom of knowledge request made by crypto publication CoinDesk, and the Legal professional Common’s workplace made them accessible to The Block.
Tether didn’t instantly reply to a request for remark.
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