Stablecoin issuer Tether wants to debunk rumors that they hold Chinese commercial paper as backing for (USDT)
In a new statement from the company, Tether says it does not hold any Chinese paper and such “false information” is a threat to the industry.
The company also says it plans to reduce its total commercial paper exposure to zero by November.
“The spread of false information is the biggest threat to the cryptocurrency industry that exists today. It is a threat of the same concern as scams, hacks or cyber attacks, because the spread of false information not only puts the reputation of the industry at risk but also all members of the community.
With that in mind, Tether would like to reiterate to the naysayers who continue to spread falsehoods about its holdings in commercial paper, that they are wrong.
Clear and simple.
Tether’s portfolio has no Chinese commercial paper, and as of today, its total commercial paper exposure has been reduced again to just ~3.7 billion (from 30 billion in July 2021), with plans to decrease further. further to ~200 million by the end of August 2022 and zero by the end of October/early November 2022.”
Commercial papers are unsecured notes with fixed maturity dates issued primarily by large institutions to raise funds for their short-term debt obligations.
Tether says that its upcoming reduction in commercial paper holdings is a sign of dedication to its user base.
“Tether continues to ensure that it has a diversified portfolio with exposure limits to individual issuers or assets. Reducing business paper is a commitment to your community. Tether is determined to lead the stablecoin market in the next wave of adoption and will do so with pride, regardless of criticism and rumours.”