According to Tether, their exposure to commercial paper has decreased from $30 billion just one year ago to $3.7 billion overall.
Tether, a prominent stablecoin issuer, has repeated that it intends to do away entirely with commercial paper backing for its USDT stablecoin this year.
Tether stated in a blog post on July 27 that it “holds no Chinese commercial paper as of now,” and that its overall exposure to commercial paper has decreased from $30 billion to $3.7 billion over the past year.
Tether stated that it intended to reduce its exposure to commercial paper to as little as $200 million by the end of August 2022, with the goal of having no commercial paper holdings by the end of October.
“Tether continues to make sure that its exposure to specific issuers or assets is contained in a diversified portfolio. Its decrease in the commercial paper demonstrates its dedication to the community, the company claimed.
The article was written in reaction to the continuous FUD surrounding Tether, which includes claims that its portfolio of commercial papers is 85% backed by Chinese or Asian commercial papers. In mid-June, Tether initially refuted the findings, saying that the claims were “absolutely incorrect.
Tether noted that the “greatest threat to the bitcoin sector that currently exists” is misleading news in its most recent blog post, adding:
“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.”
Tether’s chief technology officer Paolo Ardoino asserted in June that hedge funds attempting to short-sell the stablecoin had launched a “coordinated attack” on the USDT. According to Ardoino, Tether has been working with regulators to improve transparency initiatives and gradually reduce its exposure to commercial paper.