Tether Holdings Ltd. denied rumors that his Tether (USDT) the token was 85% backed by Chinese or Asian commercial paper. They denied rumors that he was still using Chinese commercial paper. According to reports, Tether Holdings Ltd. revealed that there was no Chinese commercial paper in the reserves backing its $66 billion stablecoin, indicating that the company issuing the most popular cryptocurrency does not own the disputed assets for the first time.
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Tether says its exposure to commercial paper has shrunk significantly over time, from $30 billion at the start of the month to $3.7 billion. Tether’s exposure to commercial paper has steadily declined in favor of holding US Treasuries to phase out all paper holdings by early November.
Tether reserve for commercial paper
Following the failure of the Terra UST stablecoins, the long-term viability of various stablecoins is being assessed. Tether now faces the challenge of disproving claims that its reserves are heavily reliant on Chinese commercial paper. Tether has not officially denied having commercial paper reserves. However, Tether’s review focuses on its 50% commercial paper stash. According to the report, there is a 50% exposure to Chinese commercial paper.
Tether faces allegations
Following the collapse of the Terra UST stablecoins, the long-term viability of various stablecoins is being assessed. Tether is now facing allegations that its reserves are heavily reliant on Chinese commercial paper. On the other hand, Tether has not formally denied a lack of commercial paper reserves. Instead, Tether is being reprimanded for keeping a 50% reserve of commercial paper. According to the report, there is a 50% exposure to Chinese commercial paper, which is significant.
The previous year, Tether Holdings Ltd. demonstrated extensive exposure to international papers, which was necessary at the time. However, the existence of a partnership between Tether and certain Asian companies involving billions of dollars in unspecified loans has long been the subject of persistent rumors.
Tether denied last month that a significant portion of its commercial paper comes from Chinese companies. However, it did not provide additional information about its interactions with Asian companies. Instead, he said he was working to reduce the amount of commercial paper in his reserves.
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