Reading 2 minutes Views 5 Published Updated
The stablecoin issuer Tether has published a lengthy response to reports that the holdings of Tether (USDT), one of the largest stablecoins, once included securities issued by Chinese companies.
On June 16, mainstream media such as Bloomberg cast doubt on USDT, highlighting that the company once used held securities issued by Chinese state-owned companies. Bloomberg cited documents released by the New York Attorney General (NYAG) and highlighted that USDT was once backed by securities from firms such as the Industrial and Commercial Bank of China, China Construction Bank Corp. and the Agricultural Bank of China.
Everything You Need To Know About What We Shared With NYAG
Read more https://t.co/0O3P1tbtYq pic.twitter.com/pegeX2uNBN
— Tether (@tether_to) June 16, 2023
On the same day, the USDT issuer responded to the reports, stating that they were made without much attention. Tether wrote:
“Ultimately, the decision by Bloomberg, CoinDesk, or any other media outlet to present this information to their readers was most likely made in a hurry with little regard for current events or facts.”
According to Tether, they “do not condone this behavior” and emphasized that their priorities are their customers. The stablecoin issuer also noted that the materials received by the media do not represent what the company is today. Tether said the data sent to the media platforms was limited and over two years old.
Related: Binance Leaves the Dutch Market: Here’s When
In addition, Tether also clarified that its exposure to Chinese commercial paper has been liquid and all issuers have been stable. The company also highlighted that the documents have also been used by some of the world’s largest investment managers. “China’s banking-related commercial paper is rated A1 or higher,” they added.
The stablecoin issuer also noted that its exposure to commercial paper dropped to zero last year. According to Tether, they have not lost money on any commercial paper. This includes commercial paper issued by Chinese firms.