Tether responds to "lending stablecoins again": still committed to removing guaranteed loans from reserves, WSJ reports suspected manipulation

Odaily Planet Daily News Tether officially issued a statement in response to WSJ’s report that it is lending stablecoins again. The article stated that the banking industry is facing significant challenges and has proven unable to keep up with the ever-changing global financial markets, a point that the Wall Street Journal (WSJ) has ignored countless times in order to tarnish the reputation of true innovators such as Tether. Traditional financial institutions did not look at themselves, but looked covetously at Tether. For the benefit of its customers, Tether has accumulated over $3.3 billion in excess reserve funds to effectively reduce exposure to safe loans. Anyone with even a passing familiarity with financial markets will understand how a company with $3.3 billion in excess reserves and on track to make $4 billion in annual profits could offset the guaranteed loans and keep those profits on the company's balance sheet. Tether remains committed to removing collateralized loans from its reserves. The uninformed need to understand the functionality of stablecoins in more detail and dispel any misconceptions about Tether’s security. Or one might wonder if this is just an attempt to manipulate tabloid-style coverage to appease their entrenched “friends” among conservatives. Earlier today, WSJ reported that Tether was once again lending its stablecoins to customers, less than a year after the company said it would phase out the practice. Tether said in its latest quarterly financial report that its reserve assets included $5.5 billion in loans as of June 30, up from $5.3 billion in the previous quarter. Tether spokesman Alex Welch confirmed the company issued the new loan.