Tether has stated that while crypto lending platform Celsius is part of its investment platform,portfolio, negative events did not affect the financial stability of the USDT stablecoin issuer.
On June 13, Celsius suspended withdrawals, exchanges and transfers between accounts. Over the past 24 hours, the CEL token has lost about 41% in price and is trading at a level near $0.21 (CoinGecko).
Competing service Nexo has already announced its readiness to buy out Celsius' loan portfolio.
Tether called the events that affected the platform's activities "the result of volatility and extreme market conditions."
Bitcoin has fallen in price by more than 13% in a day. At the time of writing, digital gold quotes are in the region of $23,700. The total capitalization of the crypto market has fallen below $1 trillion.
In October 2021, Bloomberg reported that Tether was lending to the lending platform for a total amount of about 1 billion USDT at an annual rate of 5-6%.
“Tether’s lending activity with Celsius (as with any other borrower) has always been over-collateralized and has not impacted our reserves,” the company said.
At the time of writing, there are approximately 72.3 billion USDT in circulation. Circle, the second-largest dollar-pegged stablecoin USDC, has an offer of 54.5 billion coins.
What is Tether?
Recall that in May, Tether announced that it had transferred most of the USDT collateral to US Treasury bonds.
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