In a somewhat surprising turnaround, Tether Holdings has resumed its stablecoin lending activities from its earlier intention to scale down such operations. The company has reinitiated the lending of its own stablecoin – USDT – to clients after a temporary hiatus lasting less than a year. Stablecoin loans had gained widespread popularity as a lending offering from Tether, enabling clients to secure USDT loans by providing collateral. However, the WSJ report underscored that these collateral-backed loans remain mired in controversy due to the stablecoin issuer’s lack of transparency. Tether’s ResponseIn response to the WSJ report, Tether defended its action to resume stablecoin lending activities and emphasized its commitment to the security and stability of its operations.

Source: Wall Street Journal September 21, 2023 13:04 UTC