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