Tether responds to the rumors about its commercial paper portfolio.
Tether has issued a statement in response to recent reports about its commercial paper holdings. According to the speculations, Chinese or Asian commercial papers accounted for 85% of the firm’s commercial paper portfolio and were traded at a 30% discount. “These rumors are absolutely false and presumably spread to provoke further fear in order to gain further profits from an already strained market,” the firm claimed in a June 15 statement. Tether opposes such tactics, which often see the most vulnerable users suffer the most, while a few well-coordinated funds earn the most.” The stablecoin issuer cited its most recent assurance opinion as proof of its reserves, adding that US Treasuries currently account for over 47% of total USDT reserves, with commercial paper accounting for less than 25% of USDT’s backing.
Claims that the corporation had loan exposures to Celsius and Three Arrows Capital were also refuted, with the company calling such reports “categorically incorrect.” Last year, the stablecoin sparked controversy when it stated that it had purchased a considerable amount of commercial paper. It did not, however, provide the names or locations of the companies from which it obtained the material. Tether’s USDT, the largest USD-pegged stablecoin, has been affected by the crypto winter. According to CoinGecko data, it temporarily depegged on Monday but has since risen to $1.00. Unlike the USDT, Tron’s algorithmic stablecoin USDD has been depegged since Monday. As the crypto market’s dramatic sell-off persisted, other stablecoins such as Binance USD, TUSD, and USDN saw similar price fluctuations.
Read more: Tether announces a 17% drop in commercial paper holdings in Q1 2022.
