Tether, the issuer of the popular stablecoin USDT, has released a comprehensive response to recent reports suggesting that their reserves once included securities issued by Chinese companies.
On June 16, Bloomberg and other media outlets reported that Tether had previously held securities issued by Chinese state-owned firms, citing documents released by New York’s Attorney General.
The report highlighted names like Industrial & Commercial Bank of China, China Construction Bank Corp., and Agricultural Bank of China as some of the issuers.
Tether swiftly addressed the reports, stating that they do not endorse such practices and prioritize the interests of their customers.
The stablecoin issuer emphasized that the materials obtained by the media outlets are outdated and do not accurately represent the company’s current state.
According to Tether, the data sent to media platforms is over two years old, and since then, significant changes have taken place.
They urged readers to consider the context of the information and highlighted that presenting it without considering current events may lead to misconceptions.
Tether clarified that their exposure to Chinese commercial papers was liquid and backed by stable issuers.
The company reassured that the commercial papers in question were highly rated, with a rating of A1 or better.
Moreover, Tether mentioned that these papers were utilized by some of the world’s largest investment managers, indicating their trustworthiness.
