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Tether's USDt Overcollateralization Strategy | Flash News Detail | Blockchain.News
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8/10/2024 2:01:59 PM

Tether's USDt Overcollateralization Strategy

Tether's USDt Overcollateralization Strategy

According to Paolo Ardoino, in 2022, Tether provided USDt to selected customers, including Celsius, under a simple arrangement where customers offer overcollateralization in Bitcoin. This means that customers must provide more Bitcoin than the USDt they receive. If the price of Bitcoin, which serves as the collateral, falls, it could impact the arrangement.

Source

Paolo Ardoino

@paoloardoino

Paolo Ardoino is the CEO of Tether (issuer of USDT), CTO of Bitfinex,