The world’s largest stablecoin issuer, Tether, has pledged to eventually stop the practice of lending out funds from its reserves, saying it is “mission critical to restore faith" in the crypto market.
In a Dec. 13 post, the stablecoin issuer addressed recent mainstream media FUD (fear, uncertainty, and doubt) concerning its secured loans, among other FUD which have hit the "rumor mill."
Tether reiterated that its secured loans are over-collateralized and covered by “extremely liquid assets,” while also adding that the firm would be eliminating these loans throughout 2023, stating:
Tether is announcing starting from now, throughout 2023, it will reduce secured loans in Tether’s reserves to zero.
Tether’s secured loans operate similarly to private banks lending to customers using secured collateral, the company explained. However, unlike banks that operate on fractional reserves, Tether claimed that its loans are fully backed by over 100%.
The move is likely in response to a WSJ report earlier this month that alleged these loans were risky. It claimed that the “company may not have enough liquid assets to pay redemptions in a crisis.”
#Tether Addresses FUD Around Secured Loans, Reveals Plans to Reduce These to Zero in 2023https://t.co/nZcPr8RiF1
— Tether (@Tether_to) December 13, 2022
It is not the first time the WSJ has targeted Tether. In August the outlet said that Tether could be deemed “technically insolvent” if its assets fell just 0.3%. The stablecoin issuer refuted the claims at the time stating that it had increased the legitimacy and transparency of its attestations by hiring a top-5 accounting firm.
According to those attestations, 82% of Tether reserves are held in "extremely liquid" assets.
In October, Tether responded to more media FUD by further eliminating commercial paper from its reserves and replacing the investments with U.S. Treasury Bills.
In its most recent statement, the company stated that it will wind down its lending business without losses and continue its mission to prioritize transparency and accountability.
“We will continue to show Tether’s resilience through the most uncertain times, regardless of the story fabrications and disinformation concocted by Tether Truthers and clickbait headlines from mainstream media that have been consistently wrong about Tether, for close to a decade.”
Tether is currently the leading stablecoin issuer with 65.8 billion USDT circulating giving it a market share of 46.6%, according to CoinGecko.
Tether to reduce secured loans to zero in 2023 amid battle against FUD
CointelegraphPublished on 2022-12-14Last updated on 2022-12-14
Abstract
The world’s largest stablecoin issuer, Tether, has pledged to eventually stop the practice of lending out funds from its reserves, saying it is “mission critical to restore faith" in the crypto market.
Trending Cryptos
Related Reads
Trading
Hot Articles
In-Depth Research Report on Account Abstraction (AA): Generational Leap in Ethereum’s Account System & Landscape Reshaping in the Next Five Years
As a major evolution of Ethereum’s account system, AA is designed to address the fundamental security and experience bottlenecks of the “private key equals account” model in the EOA era.
4.5k Total ViewsPublished 2025.12.18Updated 2025.12.18

Hot Tokens Learning Week 14: Glamsterdam Set to Be Ethereum's Most Closely Watched Upgrade in 2026
Ordinals/Runes continue to drive block fee revenue and developer activity, and are seen as the starting point for Bitcoin's "native asset issuance".
27.0k Total ViewsPublished 2026.04.29Updated 2026.04.29

Hot Tokens Learning Week 15: Ethereum Glamsterdam Public Testnet Launching Soon
Ethereum Glamsterdam’s current Devnet-4 has completed multiple EIP tests and is transitioning to Devnet-5; the public testnets (Holesky/Sepolia) are about to be launched.
25.6k Total ViewsPublished 2026.05.21Updated 2026.05.21

Discussions

Top Questions
- Is Ethereum’s on-chain surge challenging Bitcoin’s dominance?11/07 02:18
- Why did Ethereum drop more than 25% from its peak?11/07 02:17
- What does the drop in Bitcoin mean for Ethereum and Solana?11/07 02:18
- Why are Ethereum holders under selling pressure despite on-chain profits?11/07 02:18
- How does Elon Musk’s view of Bitcoin compare to Ethereum?11/07 02:17




