Stablecoin-issuer Tether has recently addressed reports regarding its reserves containing securities issued by Chinese companies.
The company published a detailed response to clarify the situation surrounding its stablecoin, USDT, which is one of the largest stablecoins in the market.
Several mainstream media outlets, including Bloomberg, reported that Tether had previously held securities issued by Chinese state-owned firms.
These reports were based on documents released by the New York Attorney General (NYAG), which indicated that USDT had been backed by securities from companies like the Industrial & Commercial Bank of China, China Construction Bank Corp., and the Agricultural Bank of China.
Tether swiftly responded to these allegations, stating that it does not support or endorse such behavior. The company emphasized that its main focus is on its customers and their interests. Tether further highlighted that the materials obtained by the media outlets do not reflect its current state. According to Tether, the data shared with the media is limited and over two years old.
Furthermore, Tether clarified that its exposure to Chinese commercial papers was highly liquid, and all the issuers were stable.
The company also pointed out that some of the world’s largest investment managers were utilizing these papers. Tether reassured that the Chinese banking-related commercial paper in question had a rating of A1 or better.
