Cryptocurrencies
Tether Emerges as Major Crypto Lender Since Collapse of Sector
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The largest stablecoin issuer, Tether Holdings SA, has become one of the major sources of liquidity in the digital asset market since the crash that nearly wiped out the entire crypto-lending sector several years ago.
The closely-held firm was among the top three so-called centralized lenders along with billionaire Mike Novogratz’s Galaxy Digital and the financial services company Ledn, with a combined loan book size of nearly $10 billion as of the fourth quarter of 2024, according to a research report by Galaxy. Those three companies make up 89% of the CeFi lending market as opposed to decentralized finance, where borrowers take out loans via programmed protocols without any intermediaries.