Tether's USDt Overcollateralization Strategy
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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.
SourcePaolo Ardoino
@paoloardoinoPaolo Ardoino is the CEO of Tether (issuer of USDT), CTO of Bitfinex,