[nickparker]

The tether article a week or two ago described them lending tremendous amounts of USD to exchanges and various crypto bank-like entities with Bitcoin as collateral

“ I also learned that Tether had lent billions of dollars more to other crypto companies, with Bitcoin as collateral. One of them is Celsius Network Ltd., a giant quasi-bank for cryptocurrency investors, its founder Alex Mashinsky told me. … Hoegner, Tether’s lawyer, [said] … that its secured loans are low-risk, because borrowers have to put up Bitcoin that’s worth more than what they borrow.”

https://www.bloomberg.com/opinion/articles/2021-10-07/matt-l...