Stablecoin Issuer Tether Publishes Lengthy Response to Reports About Tether Reserves
, one of the largest stablecoins, once included securities issued by Chinese companies.
On June 16, Bloomberg and other mainstream media reported that the company had used securities issued by Chinese state-owned enterprises. Citing documents released by the New York Attorney General (NYAG), Bloomberg highlighted that USDT was backed by securities of company ies such as Industrial and Commercial Bank of China, China Construction Bank, and Agricultural Bank of China. On the same day, the USDT issuer responded to the report, writing:
“Ultimately, the decision by Bloomberg, CoinDesk, or any other media outlet to present this information to its readers was likely done hastily, with little regard for current events or facts.”
According to Tether, they "do not condone this behavior," adding that their first priority is with customers. The stablecoin issuer also pointed out that the material obtained by the media does not represent what the company is now. Tether said the data sent to the media platform was limited and more than two years old. Additionally, Tether clarified that its exposure to Chinese commercial paper is liquid and stable across all issuers. The firm also said the documents were being used by some of the world's largest invest ment managers." The Chinese banking-related commercial papers involved are rated A1 or higher," they added.
The stablecoin issuer also noted that its commercial paper holdings fell to zero last year. According to Tether, it has not lost any money on any commercial paper. This includes commercial paper issued by Chinese companies.
