Major stablecoin firm Tether is seeking to finally shed commercial paper backing for its US dollar-based stablecoin USDT.
Tether issued an official statement on Wednesday to deny news claims that Tether’s commercial paper portfolio is 85% backed by Chinese or Asian commercial paper and is trading at a 30% discount.
The firm described such allegations as “completely false”, reiterating that more than 47% of the total USDT reserves are currently “US Treasuries”. In its latest collateral opinion issued in May, Tether reported that commercial paper makes up less than 25% of USDT’s backing, which stood at about $21 billion as of March 31.
According to the latest release, Tether has continued to reduce its current commercial paper portfolio, decreasing its volumes to $11 billion. The company expects to further reduce it to USD 8.4 billion by the end of June 2022, with the aim of liquidating its commercial paper portfolio, according to the statement:
“This will taper to zero with no loss. All commercial paper is expiring and will be converted to short-maturity US Treasuries.”
Tether also brought up the recent Celsius lending platform crisis again, noting that the Celsius position has been liquidated with no loss to Tether. “Tether does not currently have any exposure to Celsius other than a small investment in the company made with Tether capital,” the firm said.
Tether also argued that reports suggesting the firm has lending exposure to cryptocurrency venture capital firm Three Arrows Capital are also “categorically false.”
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.