Celsius Network, a cryptocurrency lending and borrowing platform, announced on Wednesday it has formed a partnership with Tether, a stablecoin which pegs its value to the US dollar. Celsius Network reported that its mobile app will now support the USDT ERC20 stablecoin allowing USDT holders to earn rewards and request loans on a far less volatile asset than other cryptocurrencies.
“Celsius users can now request a loan issued in USDT, in addition to the existing stablecoins and fiat loan options available through Celsius, at rates as low as 4.95% APR. The company currently offers interest income of 8.1% APR on USDT deposits and 10.53% when paid in CEL tokens. At the same time, using stablecoins reduces capital costs, allowing Celsius to offer loans at a lower rate.”
Speaking about the partnership, Alex Mashinsky, CEO of Celsius Network, added:
“At Celsius, we’re working toward mass adoption of cryptocurrencies by paying 10X more than what banks pay on deposits and providing loans at rates unmatched by any bank or crypto lenders. Stablecoins, such as USDT, allow crypto holders to keep their funds in crypto, allowing for frictionless trades, while sidestepping the market’s lows and highs. We continue to Socialize profits while others only socialize losses.”
Meanwhile, Tether has been a hot topic over the past few weeks and even crypto-twitter commentators are apparently throwing shade at the controversial stablecoin with claims that a correlation between recently stable cryptocurrency prices and the cessation of “printing” on the Tether platform. Andrew Rennhack, who describes himself as a cryptocurrency and stock market gambler reported accused Tether of acting as a Central Bank of Crypto” and engaging in “quantitive easing,” practices that are regularly derided by fans of cryptocurrencies.
Bitfinex’ed, an anonymous critic, has also accused Tether or engaging in fraud and price manipulation. The critic has repeatedly asked Tether to release credible audits, but the company never has.