Tether reports that its total commercial paper exposure has been cut to $3.7 billion from $30 billion just one year ago.
The major stablecoin issuer Tether has reiterated that the company plans to completely get rid of commercial paper backing for its U.S.-dollar stablecoin USDT already this year.
In a blog post on July 27, Tether said it “holds no Chinese commercial paper as of today,” while its total commercial paper exposure has been cut to $3.7 billion from $30 billion one year ago.
By late August 2022, Tether said thatplans to decrease commercial paper exposure to as low as $200 million, targeting zero commercial paper holdings by the end of October, the statement reads.
“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,” the firm said.
The post came in response to the ongoing FUD around Tether, with some reports alleging that Tether’s commercial paper portfolio is 85% backed by Chinese or Asian commercial papers. Tether previously denied the reports in mid-June, stating that such allegations were “completely false.
In the latest blog post, Tether pointed out that false reports pose the “biggest threat to the cryptocurrency industry that currently exists,” adding:
In June, Tether chief technology officer Paolo Ardoino claimed that the USDT has been the subject of a “coordinated attack” by hedge funds looking to short-sell the stablecoin. Ardoino said that Tether has been collaborating with regulators to increase transparency efforts and to phase out its commercial paper exposure.