Tether Denies Rumours About Holding Chinese Commercial Papers

Tether, an asset-backed stablecoin issuer established in 2014, denies all rumors about holding Chinese commercial papers. 

According to the blog post shared on July 27th, Tether claims that it not only doesn’t have any Chinese Commercial Papers, but is even intending to reduce the number of commercial papers, in general. 

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The company assures that they have already lowered the number of commercial papers whose worth is $3,7 billion compared to $30 billion worth of papers they had last year. Moreover, Tether intends to lower the number even greater. The goal is to reduce the number of commercial papers, which are worth $200 million by August and completely scrap all of them by November. 

Tether claims that the continuous spread of allegations can harm not only the industry but also different community members. In their blog post the company adds:

It is a threat of the same concern as scams, hacks or cyberattacks because the spreading of false information risks not only the reputation of the industry but also each and every member of the community.

With this in mind, Tether assures investors that the company seeks to have a “diversified portfolio”, which is limited to exposure to “individual issuers or assets”. 

This is not the first time that Tether has to explain themselves regarding these rumors. The issue first appeared back in October after Bloomberg issued an investigation stating that Tether has given short-term loans to large Chinese companies. 

However, in June, Tether provided a statement denying these rumors, which essentially claimed that their portfolio was backed by 85% Asian commercial papers the majority of them being Chinese. 

In other news, on July 25, Tether alongside Bitfinex and Hypercore launched a platform for peer-to-peer applications, as well as Keet, an application used for encrypted video calls and text communication.