The Wall Street Journal: Tether issues stablecoin loans again, less than a year after its promise to "reduce loans to zero."

ChainCatcher news, according to The Wall Street Journal, Tether has once again lent its stablecoins to clients, despite the company stating less than a year ago that it would gradually reduce this practice.

In its latest quarterly financial report, Tether stated that as of June 30, its reserve assets included $5.5 billion in loans, up from $5.3 billion in the previous quarter. Tether spokesperson Alex Welch confirmed that the company has issued new loans.

Welch stated, "Tether received short-term loan requests from several long-term partner clients in the second quarter of 2023, and we decided to fulfill these requests. The loans will be canceled in 2024. The company's goal is to prevent clients from experiencing significant liquidity depletion or to prevent them from selling collateral at potentially unfavorable prices to avoid losses."