Tether's Excess Reserves Plunge Amid Asset Depreciation

Tether's excess reserves halved to $4.1 billion in Q1, sparking concerns about the company's financial stability.

The decline comes as Tether has been expanding its lending business, with a new private credit fund launched in partnership with Fasanara Capital.

The fund, StableFund, aims to lend to fintech platforms across 60 countries, covering small business loans, consumer credit, and trade receivables. However, the exact breakdown of Tether's contribution to the fund is unclear.

Tether's reserves are not solely comprised of U.S. Treasury securities, with $18.84 billion in precious metals and $5.8 billion in Bitcoin also included.