Tether lends billions of dollars to Cryptocurrency companies using BTC as collateral. Just recently, the Celcius network became the latest beneficiary of this privilege.
Alex Mashinsky, the founder of Celcius Network, revealed that the company received a billion dollars, and they will pay at a 5 or 6 percent rate. Additionally, Alex tweeted, saying that Celcius got the loan in the form of Tether and not dollars.
This June, Tether played a significant role in Celcius’s first equity round, making the highest investment. Celcius featured Tether products in their service launch and said it would use the 30 million raised during the funding round to expand its community and the global services it provides.
Addressing misinformation going around, Tether, through a statement, said their tokens are 100% backed. To back these claims, they linked a report from an independent accountant, showing findings from Moore Cayman.
Recent reports show that stablecoins are slowly taking over the market, providing the globe with various use cases.
About Celcius Network
Celcius is a network with more than a million users who get up to 17% on their Cryptocurrencies. On the Celcius network, one can do the following:
- Buy Coins
- Earn Yields
- Carry out a no-fee transfer
- Borrow
Notably, the Network is available for web and mobile.
In addition to this, the Celcius Network has over eight hundred million in returns paid since its launching in 2018. Also, the company has more than 21 billion in assets.
Notably, the company is registered in the United States and operates 24/7, offering services globally to more than one hundred countries.
The Celcius Network also made history as the first to break through the 20 billion dollar assets mark for any Centralized and decentralized Finance platform.
It aims to give its users a direction on the path towards financial independence.
About Tether
Tether International Limited is a Crypto company whose tokens are issued by Tether Limited. John Betts founded Tether in 2014, intending to make it worth a dollar; hence it is referred to as a stable coin.
The Network converts fiat into Crypto and has a market capitalization of more than sixty-eight billion dollars. Report has it that Tether is the fourth largest behind Bitcoin, ETHER, and Cardano.
Conclusion
In summary, Tether lends Billions of dollars to many Crypto companies, and Celcius is among the many beneficiaries. Rumors were going round claiming Celcius received the billion-dollar loan in the form of Bitcoin. Celcius Network officials, however, claimed that these were false allegations and that Tether used tokens during the lending.
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