The Wall Street Journal cited Foresight News as saying that Tether declared in December that it would lower its collateral loans to zero in its reserves to address the collateral loan controversy. Tether’s Q2 financial report, however, shows that its reserve assets now total $5.5 billion in loans, up from $5.3 billion in the prior quarter.
‘Tether received multiple short-term loan requests from long-term partnership clients in Q2 2023, and we opted to fulfill these requests,’ said Tether spokesperson Alex Welch in response to the news that the company had given fresh loans. In 2024, the loans will be forgiven. The corporation wants to avoid a significant loss of client liquidity or to avoid selling collateral at possibly unfavorable rates.
