Tether Says No More Chinese CP
A Bloomberg article, "Tether Says There Is No Chinese Commercial Paper Among Its Reserves," tells us, "Tether said the reserves backing its $66 billion stablecoin do not contain any Chinese commercial paper, likely marking the first time that the issuer of the world's most used cryptocurrency explicitly stated it doesn't hold the controversial assets. Tether Holdings Ltd., which issues and operates the US dollar-pegged token USDT, had most recently refuted speculation that its token was 85% backed by Chinese or Asian commercial paper in June. It has been steadily decreasing its exposure to commercial paper in favor of holding US Treasury bills, with a goal of reducing its paper holdings to zero by early November." An indignant blog post by Tether, "Tether Combats False Information to Preserve the Reputation of the Cryptocurrency Ecosystem," claims, "The spreading of false information is the biggest threat to the cryptocurrency industry that currently exists. 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 that in mind, Tether would like to again reiterate to naysayers who continue to spread falsities about its commercial paper holdings, that you are wrong. Plain and simple. Tether's portfolio holds no Chinese commercial paper and as of today, its total commercial paper exposure has been reduced yet again to a mere ~3.7B (from 30B in July 2021) with plans to further decrease to ~200M by the end of August 2022 and to zero by end of October/early November 2022. Tether continues to ensure that it has a diversified portfolio with limits to exposure on individual issuers or assets. Its reduction in commercial paper is a commitment to its community. Tether is determined to lead the stablecoin market through the next wave of adoption and it will do so proudly regardless of critics and rumors." The mystery continues though why Tether won't just disclose its holdings. See here for the latest disclosures on "Transparency".
