Specifically, the Wall Street Journal has committed attacks and FUD against the move.
Keeping funds in reserves is “mission critical” to restoring trust in the cryptocurrency market, according to the largest stablecoin issuer in the world, Tether.
Recently, mainstream media reported FUD about the stablecoin issuer’s secured loans, which hit the “rumour mill.”
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Over-collateralized secured loans are covered by “extremely liquid assets” and eliminated throughout 2023.
According to Tether, by 2023, secured loans will be reduced from Tether’s budget to nil.
In the same way, private banks make loans to customers, Tether does so by using secured collateral. In contrast to banks that operate on fractional reserves, Tether claims its loans are 100% backed.
#Tether Addresses FUD Around Secured Loans, Reveals Plans to Reduce These to Zero in 2023https://t.co/nZcPr8RiF1
— Tether (@Tether_to) December 13, 2022
WSJ reported recently that the company might not have enough liquid assets to repay redemptions in the event of a crisis.”
Tether has previously been targeted by the WSJ.
It was reported in August that Tether could be declared insolvent if its assets fell by just 0.3%. Tether denied these claims, claiming that it had enhanced the lawfulness of its attestations by hiring a top-5 accounting firm.
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Tether reserves are located in assets considered “extremely liquid” in nearly 82% of those attestations.
Response to more media FUD came in October when Tether began to replace its commercial paper holdings with Treasury bills.
Earlier this year, a statement stated that the company would close its lending operations without incurring losses while continuing to value transparency and accountability.
Furthermore, despite visions and information espoused by Tether Truthers and clickbait headlines in mainstream media, Tether’s resilience will continue to be demonstrated through these uncertain times. Almost a decade has gone by since that statement was made about Tether.
Currently, 65.8 billion USDT are circulating in Tether, making it the leading stablecoin issuer. It has a market share of 46.6%.
Also Read: Tether has frozen a 48 million USDT asset on Tron Owned by FTX