Tether, the leading stablecoin issuer, has released a comprehensive response addressing recent media reports regarding its previous holdings of Chinese securities. In an official statement, the company vehemently denied any wrongdoing and emphasized its commitment to customer satisfaction and financial stability.
The reports, which surfaced on June 16 and were primarily circulated by mainstream media outlets such as Bloomberg, alleged that Tether had once backed its USDT stablecoin with securities issued by Chinese state-owned firms. However, Tether swiftly clarified that the information presented in these reports is outdated and does not accurately reflect the company’s current operations.
Tether firmly stated, “We do not condone this behavior,” indicating their disapproval of the use of Chinese securities in the past. The stablecoin issuer affirmed that it prioritizes the interests of its valued customers above all else.
It stressed that the data provided to the media outlets was limited and over two years old, further asserting that its exposure to Chinese commercial papers was both liquid and associated with stable entities.
Moreover, Tether clarified that it has significantly reduced its exposure to commercial paper holdings since last year and currently maintains no holdings of this nature. The company assured stakeholders that it did not incur any losses from these commercial papers, including those issued by Chinese firms.
Tether further highlighted that the Chinese banking-related commercial papers in question were consistently rated A1 or better, reinforcing their stability and credibility.
While acknowledging that some of the world’s largest investment managers utilized these commercial papers, Tether emphasized that it no longer relies on such instruments for its stablecoin backing. The company’s decision to divest from commercial paper holdings reflects its unwavering commitment to maintaining a robust and secure financial ecosystem for its users.
As the controversy surrounding Tether’s previous holdings unfolds, the stablecoin issuer remains steadfast in its dedication to transparency and accountability. Tether continues to cooperate with relevant authorities and intends to keep its customers informed about any further developments.
With its latest response, Tether strives to reassure its users and the broader cryptocurrency community about the stability and reliability of its stablecoin, USDT. The company aims to restore confidence and reinforce its reputation as a trusted player in the evolving digital asset landscape.
