Tether Liquidated an Overcollateralized Bitcoin Loan From Celsius Without Risk

July 11, 2022 World Blockchain

Tether, the company behind USDT, the largest stablecoin by market capitalization, revealed that it liquidated Celsius’s position without risk to its reserves.

In a press release on Friday (July 8, 2022), Tether stated that beleaguered lending platform Celsius took an overcollateralized loan from the company, denominated in bitcoin (BTC).
The stablecoin issuer said it has since liquidated the loan based on the agreed-upon terms of the transaction. According to Tether:
“This process was carried out in a way to minimize as much as possible any impact on the markets and in fact, once the loan was covered, Tether returned the remaining part to Celsius as per its agreement. Celsius position has been liquidated with no losses to Tether.”