Tether reports hadn’t disclosed that loans it issues are denominated and payable in the token. The rise in Tether’s lending add risk to the crypto world.

Tether’s reports used to say that none of the loans were to affiliated entities. However, it dropped that language starting with its report for the second quarter of 2022. Ms. Welch wouldn’t say why Tether dropped the language and declined to say how much, if any, of Tether’s loans were to related parties as of Sept. 30.