Tether, the crypto giant behind the world’s largest stablecoin, recently called out legacy media outlet the Wall Street Journal for its repeated scrutiny of the stablecoin issuer. Tether also highlighted ongoing challenges in the banking sector. Along these lines, he accused the WSJ of failing to report shortcomings in traditional finance.
Wall Street Journal made a sensational news about Tether
In a recent blog post, Tether stated that traditional financial (TradFi) institutions are not properly meeting the needs of their customers. According to the USDT issuer, TradFi players chose to examine Tether’s operations instead of focusing on their customers. In its defense, the stablecoin company stated that its excess reserves for the benefit of its customers exceeded $ 3.3 billion.
Meanwhile, Tether chief technology officer Paolo Ardoino criticized a WSJ news report. cryptokoin.comAs you follow from , WSJ reported on the company’s USDT-denominated loans. The news included the comment of a company official explaining the conditions under which new loans were granted in the second quarter of the current year. Previous reports were that the company was quietly re-granting loans. Following this development, Ardoino made a harsh statement regarding the Wall Street Journal’s news.
““The WSJ news is wrong, the person he is talking about is not a Tether spokesperson or employee.”
The issue was with the company’s financial statement, which said it was increasing the issuance of USDT-denominated loans in 2023, which was contrary to its own announcement to reduce credit risk to zero. In December 2022, Tether revealed a plan to reduce exposure. Thus, it addressed concerns about the increasing burden of secured loans. However, the latest quarterly report showed that secured loans increased in amount in 2023 compared to the same period in 2022.
Additionally, the WSJ report quoted a comment from Alex Welch, who was initially said to be a Tether spokesperson. Ardiono explained that the WSJ misreported the comment because Welch wasn’t even a company employee in the first place. In the report, Welch cited “a small number of short-term loan requests from customers” as the reason for the increase in secured loans. At this point, Ardiono made the following statement:
The person the WSJ references in its article is not a Tether spokesperson and does not work at Tether. Because this person has stated this many times in his correspondence with the tabloid newspaper.
Stablecoin issuer company invests in new areas
Paolo Ardoino stated that the company actually aims to make a profit of $4 billion a year. He also noted that he is ready to reduce secured loans. Reiterating the plan, he said Tether is committed to continuing until secured loans are removed from reserves.
On the other hand, the company recently announced a strategic investment in Northern Data Group through Damoon, a Tether Group company. Tether has recently been moving into sectors such as energy production, Bitcoin mining and communications technology. Thus, the company is actively investing to expand beyond Fintech. Company CTO Paolo Ardoino said the following regarding this development:
This investment underscores our commitment to responsible growth and innovation while preserving the strength and integrity of the reserves of Tether tokens. The latest investment represents a new venture into new technology frontiers for Tether.
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