A total of 694 loans were made during this period. 89% of these loans were secured by bitcoin. In another 9% of cases, ether was used as collateral. For the remaining 2% of loans, customers used Tether Gold Stablecoin (XAUT) and “unnamed securities” as collateral.
Tether received over 450,000 BTC and 1.1 million ETH as collateral during this period. At the same time, it is reported that during the same period, Tether repaid $8 billion in loans.
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“Tether has historically been involved in lending activities. We disclosed these transactions to select large customers of the company to show our security and independence,” commented Tether.
Tether representatives also emphasized that all of the loans issued were over-collateralized, meaning that the value of the collateral was higher than the amount of the loan. In addition, at the end of 2022 and throughout 2023, the company was phasing out loans. For example, at the end of last year, Tether stopped lending against USDT.