Tether Stablecoins Face Renewed Scrutiny Post-FTX

Tether, an asset-backed cryptocurrency stablecoin, has been lending its coins to customers.

That’s according to a new report by the Wall Street Journal (WSJ) today (Dec. 1).

Tether, which is also known as USDT, is a stablecoin, or a cryptocurrency that, rather than fluctuating in value, is “pegged” to the U.S. Dollar (USD) stablecoin, meaning that each Tether is supposedly backed in value 1:1 with one USD or the equivalent.

If cryptocurrencies are assumed to be the speculative...