The main stablecoin company Tether is searching to eventually eliminate commercial paper backing because of its U.S. dollar-based stablecoin Tether (USDT).
Tether issued the official statement on Wednesday to deny reports alleging that Tether’s commercial paper portfolio is 85% supported by Chinese or Asian commercial papers and it is being traded in a 30% discount.
The stablecoin firm known as such allegations “completely false,” reiterating which more than 47% of total USDT reserves are actually the “United States Treasuries.” In the latest assurance opinion issued in May, Tether reported that commercial paper comprises under 25% of USDT’s backing, amounting close to $21 billion by March 31.
Based on the latest statement, Tether has ongoing to lessen its current portfolio of business paper, decreasing its volumes to $11 billion. The firm expects to help reduce it to $8.4 billion through the finish of June 2022, eventually planning to obvious out its commercial paper backing, the statement reads:
“This will progressively decrease to zero with no incurrences of losses. All commercial papers are expiring and will also be folded into U.S. Treasuries having a short maturity.”
Tether also once more pointed out the current crisis from the Celsius lending platform, noting that Celsius position continues to be liquidated without any losses to Tether. “Tether has presently zero contact with Celsius aside from a little investment made from Tether equity in the organization,” the firm stated.
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Tether also contended that reports suggesting that Tether has lending contact with the crypto investment capital firm Three Arrows Capital will also be “categorically false.”
