USDT issuer Tether responds to Chinese securities exposure reports

Tether Responds to Claims of Backing USDT with Chinese Securities

Tether, a stablecoin issuer, has issued a comprehensive response to claims that the funds backing Tether (USDT), one of the most significant stablecoins, once included securities issued by Chinese companies.

Mainstream media outlets, such as Bloomberg, reported on June 16th that the company had previously held securities issued by Chinese state-owned companies. The documents released by New York’s Attorney General (NYAG) were referenced by Bloomberg, which noted that USDT was once supported by securities from organizations like the Industrial and Commercial Bank of China, China Construction Bank and Agricultural Bank of China.

On the same day, the issuer of USDT issued a response to the reports, stating:

Tether declared that they do not approve of this behavior and that their main focus is their customers. Additionally, the company mentioned that the information given to the media outlets does not reflect the current state of the business. Furthermore, Tether pointed out that the data provided to the press was restricted and dated back more than two years.

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Furthermore, Tether made it clear that its exposure to Chinese commercial papers was liquid and the issuers were all reliable. Additionally, they mentioned that these papers were employed by some of the most prominent investment managers in the world. “The Chinese banking-related commercial paper in question had a rating of A1 or higher,” they stated.

Tether declared that its involvement in commercial paper investments was brought down to nothing in the past year. They asserted that they had not experienced any financial losses due to any commercial paper, including those issued by Chinese companies.

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