Tether has announced that it will remove the commercial paper backing for its USDT stablecoin without incurring losses.
The stablecoin issuer has refuted claims that its Tether’s commercial paper portfolio is 85% backed by Chinese or Asian commercial papers and traded at a 30% discount.
The company says the allegations are false, saying that over 47% of the total USDT reserves are now the United States Treasuries.
Tether reported that commercial paper makes up less than 25% of USDT’s backing, totaling about $21 billion as of March 31.
The latest announcement by the stablecoin issuers notes that it has cut its existing portfolio of commercial papers, reducing its volumes to $11 billion. The company expects to continue reducing it to $8.4 billion by June 2022.
Tether has also denied claims that it has an exposure to cryptocurrency venture firm Three Arrows Capital, which has been rumored to be facing insolvency.
Source: Tether