Tether Resumes Lending Amid Market Concerns: A Risky Move Or A Boon For Liquidity?
Portfolio Pulse from Khyathi Dalal
Tether Group has resumed lending Tether (CRYPTO: USDT) stablecoin loans to customers after a year-long pause. The company believes this will protect its long-term customers from liquidity shortages or selling assets at inappropriate rates. Despite concerns about the company's secured loans and their potential to destabilize the market, Tether saw loans at $5.5 billion in the latest reported quarter, up from $5.35 billion in the prior quarter. The company remains committed to removing the secured loans from its reserves, with a spokesperson indicating 2024 as the year of zero secured loans.
September 21, 2023 | 9:30 pm
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Tether's decision to resume lending could potentially increase the liquidity of USDT in the short term. However, concerns about the company's secured loans and their potential to destabilize the market could negatively impact investor confidence.
Tether's decision to resume lending could increase the liquidity of USDT, which could be positive for the short-term price. However, the concerns about the company's secured loans and their potential to destabilize the market due to its stablecoins dominance could negatively impact investor confidence, which could put downward pressure on the price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100