Tether denies all the allegations imposed in recent days.
On June 15, the stablecoin company Tether issued a statement, regarding the rumors which suggest that its commercial paper portfolio is 85% backed by Asian and Chinese commercial papers and “is being traded at a 30% discount.”
According to the official report, Tether commented that such rumors which attempt to cause more chaos in the crypto market are “completely false.” On top of that, the latest report released back in May revealed that more than 47% of the organization’s total USDT reserves are now US Treasuries and “that commercial paper makes up less than 25% of USDT’s backing.”
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Polygon in Crypto? (Animated Explainer)
“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.”
Furthermore, Tether reported that the business was able to reduce its portfolio of commercial paper to $11B, whereas by the end of this month, it expects a further $8.4B decline. CTO of Tether Paolo Ardoino mentioned on his Twitter account:
Tether also denied the rumors which implied that the company has a lending exposure to Three Arrows Capital, a crypto trading and VC organization.
Yesterday, the stablecoin firm also noted that the recent fall of Celsius won’t have any implications on USDT reserves, adding that “lending activity with celsius has always been overcollateralized.”
In other news, earlier in June, Tether announced that it would be launching its new Mexican peso-pegged stablecoin MXNT as there is a significant surge of crypto use in Latin America.