Stablecoin issuer Tether wants to debunk rumors that they hold Chinese commercial paper as backing for (USDT)
In a new statement by the company, Tether says that it does not hold any Chinese paper, and such “false information” is a threat to the industry.
The company also notes it eventually plans on reducing its total commercial paper exposure to zero by November.
“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 ~3.7 billion (from 30 billion in July 2021) with plans to further decrease to ~200 million by the end of August 2022 and to zero by end of October/early November 2022.”
Commercial papers are unsecured promissory notes with fixed maturity dates primarily issued by large institutions to obtain 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 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.”
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Source: https://dailyhodl.com/2022/07/27/tether-condemns-false-information-denies-holding-any-chinese-commercial-paper-in-new-statement/