Tether, a well-known stablecoin company, wants to one day stop backing its US dollar-based stablecoin with commercial paper (USDT).
Wednesday, Tether released a statement that denied claims that its commercial paper portfolio is backed by Chinese or Asian commercial papers for 85% and is trading at a 30% discount.
The stablecoin company said that these claims are “absolutely wrong,” saying that “United States Treasuries” make up more than 47% of all USDT reserves right now. In its most recent assurance opinion, which was released in May, Tether said that commercial paper backed less than 25% of USDT, or about $21 billion as of March 31.
According to the most recent news, Tether’s portfolio of commercial paper has been cut down to $11 billion. The business plans to lower it even more, to $8.4 billion by the end of June 2022, so that it can finally get rid of its commercial paper backing.
“This will gradually decrease to zero without any incurrences of losses. All commercial papers are expiring and will be rolled into U.S. Treasuries with a short maturity.”
Tether also talked about the problem with the Celsius lending platform and said that the Celsius stake had been sold and that Tether had not been hurt.. “Tether has currently zero exposure to Celsius apart from a small investment made out of Tether equity in the company,” the company said.
Tether has said that claims that it gave loans to the cryptocurrency venture capital company Three Arrows Capital are “categorically false.”