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Tether Says There Is No Chinese Commercial Paper Among Its Reserves

  • Stablecoin issuer’s reserves under scrutiny as new rules near
  • Markets have sought more clarity on what securities are held
The Tether logo on a laptop computer arranged in Dobbs Ferry, New York, U.S., on Saturday, May 22, 2021. Elon Musk continued to toy with the price of Bitcoin Monday, taking to Twitter to indicate support for what he says is an effort by miners to make their operations greener.
The Tether logo on a laptop computer arranged in Dobbs Ferry, New York, U.S., on Saturday, May 22, 2021. Elon Musk continued to toy with the price of Bitcoin Monday, taking to Twitter to indicate support for what he says is an effort by miners to make their operations greener.Photographer: Tiffany Hagler-Geard/Bloomberg
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Tether said the reserves backing its $66 billion stablecoin do not contain any Chinese commercial paper, likely marking the first time that the issuer of the world’s most used cryptocurrency explicitly stated it doesn’t hold the controversial assets. 

Tether Holdings Ltd., which issues and operates the US dollar-pegged token USDT, had most recently refuted speculation that its token was 85% backed by Chinese or Asian commercial paper in June. It has been steadily decreasing its exposure to commercial paper in favor of holding US Treasury bills, with a goal of reducing its paper holdings to zero by early November.