HTX Confirms Use of stUSDT as Collateral for Future USDT Trading

IconCryptoNewsTerminal Staff12 Jul, 2024

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HTX Confirms Use of stUSDT as Collateral for Future USDT Trading

HTX Confirms Use of stUSDT as Collateral for Future USDT Trading Ki-Young Joo, CEO of CryptoQuant, recently revealed that HTX held an open BTC/USDT futures position worth $515 million, a five-fold increase in the past two months. However, HTX's USDT reserves were only $24 million, raising questions about the use of other collateral such as stUSDT. HTX currently holds $460 million worth of stUSDT. In response to inquiries, HTX confirmed that stUSDT and aEthUSDT were used on the platform, suggesting that these assets were used as collateral for futures trading. Justin Sun, founder of TRON, denied any involvement in the trading, leaving the identity of the responsible party unknown. HTX declined to disclose this information due to privacy concerns. Joo had previously tweeted that Sun had opened a large Bitcoin long position with $460 million worth of stUSDT as collateral on HTX, but later deleted the tweet. This development highlights the growing use of stUSDT in decentralized finance and raises questions about the transparency and risk management practices of centralized exchanges.

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