Tether has used its hundreds of billions in assets to become many things, including social media investors, data center lenders, and one of the largest holders of U.S. T-bills. But this week, Tether became something else: a crypto startup’s lender of last resort. The stablecoin giant put up $127.5 million in funding—some in loans, some in grants—to aid the recovery of Drift, a Solana-based derivat...
The strongest version of this narrative frames Tether as a proactive problem-solver in the crypto ecosystem, contrasting its decisive action with Circle’s cautious, legally constrained approach. Tether’s intervention not only aids Drift but also strategically positions USDT as a more reliable stablecoin in the eyes of Solana users, leveraging a crisis to gain market share. The narrative also underscores the moral and operational dilemmas faced by stablecoin issuers—Circle’s refusal to freeze fun...