Tether, the company behind the issuance of USDT, the largest stablecoin in the crypto market, has called out the latest report of the Wall Street Journal (WSJ) on the rise of its loan portfolio. The company stated that traditional banking institutions were “not addressing the needs of their customers” while facing “significant challenges,” with the WSJ not reporting on this issue.
Tether Blasts WSJ Article, Calls It ‘Tabloid Reporting’
Tether, the stablecoin company, has called out a recent Wall Street Journal (WSJ) article as “tabloid-style reporting” directed to “tarnish” the reputation of innovative companies.
The article, which points out the rise in Tether loans in the latest financial quarter update, was heavily criticized by the company, which stated that the news outlet had ignored reporting on the problems the traditional banking industry is facing.
In a statement, Tether declared:
The banking industry is facing significant challenges and has proven incapable of keeping up with evolving global financial markets, something the Wall Street Journal has disregarded countless times.
Furthermore, Tether defended its financial position, boasting more than $3.3 billion in excess reserves, a number that would reduce its exposure to these secured loans. Tether declared it was still committed to removing the secured loans from its reserves.
Lending Impasse
In the article bashed by the company, the WSJ reported that Tether spokeswoman Alex Welch confirmed the company received loan requests from customers with whom they had “cultivated longstanding relationships,” deciding to accommodate them.
WSJ writer Jonathan Weil explained these loans represented “a potential risk to the crypto world.” However, for Tether, the moves in its lending portfolio are a logical step given the company’s financial standing.
Tether rebuffed Weil’s assertions, declaring:
Anyone with a minimum understanding of financial markets would see how a company having $3.3 billion in excess equity and on track to make a yearly profit of $4 billion is in all effects offsetting the secured loans and retaining such profits.
Tether has been expanding its focus, investing in bitcoin mining operations in Latam, like Volcano Energy in El Salvador and another undisclosed mining project in Uruguay.
Tether has also invested in the artificial intelligence (AI) semiconductor market. According to reports, the company purchased 10,000 Nvidia H100 graphics processing units (GPUs) used for AI computations for $420 million, securing a stake of 20% in Northern Data, a Bitcoin mining company.
What do you think about the increase in Tether’s loan portfolio and its criticism of WSJ’s coverage? Tell us in the comments section below.
