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Tether Is Working Towards Fully Eliminating USDT’s Commercial Paper Backing

Tether Is Working

The major stablecoin company Tether is set to eventually get rid of commercial paper supporting its United States dollar-based stablecoin Tether (USDT).

Source: Tether

USTUSD down -0.04%, BTCUSD down -4.23%

Tether denied reports claiming that Tether’s commercial paper portfolio is 85% supported by Chinese or Asian commercial papers and is now traded at a 30% discount.

The stablecoin firm described such allegations as completely false, emphasizing that over 47% of total USDT reserves are the United States Treasuries.

In the recent assurance opinion reported in May, Tether reported that commercial paper accounts for less than 25% of the overall USDT’s backing, valued at around $21 billion as of March 31.

Tether has continued to cut its current portfolio of commercial paper, reducing its volumes to $11 billion. The company expects to reduce it to $8.4B by the end of June 2022.

Tether argued that reports indicating that the company has a lending exposure to crypto venture capital firm Three Arrows Capital are false.


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