Tether, the issuer of the world’s largest stablecoin, USDT, said it still plans to get rid of its commercial paper used as backing for its US dollar-pegged stablecoin. The company also refuted claims that it held Chinese commercial paper.
Tether denies holding Chinese commercial paper
Tether released a blog post on July 27 declaring not to hold Chinese commercial paper. He also added that his exposure to commercial paper had been reduced significantly, from $30 billion a year ago to $3.7 billion.
Tether says that by the end of next month, it plans to reduce its commercial paper exposure to $200 million and will have zero commercial paper holdings by the end of October this year.
The company’s statement indicated that the stablecoin issuer plans to have a diversified portfolio. It also planned to limit exposure to individual assets or issuers. By reducing commercial paper, she is also committed to working with her community.
Concerns about Tether reserves
The blog post published by Tether comes at a time when the global cryptocurrency market has taken the brunt of several stablecoin depeggings. Tether has been clouded in FUD over the past few months. Some of the claims indicated that USDT was 85% backed by Chinese and Asian commercial papers.
However, Tether has strongly denied reports of these claims. In mid-June, the stablecoin issuer said the allegations were “completely untrue.” The company also pointed out that it was reducing its commercial paper holdings to reduce the level of risk.
Tether also said misrepresentations made in the cryptocurrency industry are the biggest threat to the industry. The company also added that there are many risks in the cryptocurrency space, including scams, hacks, and cybersecurity attacks. However, spreading false information was just as risky as it harmed the reputation of the crypto industry and members of the crypto community.
Last month, Tether’s chief technology officer, Paolo Ardoino, said the USDT stablecoin was under a “coordinated attack” from hedge funds who wanted to short the stablecoin hoping that it would would collapse. He also said hedge funds were behind FUD.
Ardoino further added that Tether has worked with regulators to increase transparency in the cryptocurrency industry. It would also eliminate any commercial paper exposure to reduce USDT risk.
Battle Infinity – New Crypto Presale
- Presale until October 2022 – 16500 BNB Hard Cap
- First Fantasy Sports metaverse game
- Play to Earn Utility – IBAT Token
- Powered by Unreal Engine
- CoinSniper Verified, Strong Proof Verified
- Battleinfinity.io roadmap and whitepaper