Tether Hits Back at ‘False Rumors’ Regarding Its Commercial Paper Portfolio

Concerns have long been raised about whether Tether has enough U.S. dollars in reserve to pay for all the USDT in circulation.

 

Tether has denounced “false rumors” surrounding its commercial paper portfolio amid growing fears that the world’s biggest stablecoin is vulnerable to collapse during the bear market.

 

In a statement, the company that issues the digital asset dismissed claims that 85% of its commercial paper portfolio derives from Asian markets — and that it’s currently trading at a 30% discount.

 

Warning that “simple users” risk taking the biggest hit as “coordinated funds” cash in on the uncertainty, Tether added:

 

“These rumors are completely false and likely spread to induce further panic in order to generate additional profits from an already stressed market.”

 

There have long been concerns about whether Tether has enough U.S. dollars in reserve to cover all of the USDT in circulation.

 

While the company previously said that its stablecoins were 100% backed by real U.S. dollars, Tether’s changed its tune in recent years.

 

Assurance opinions appear to show USDT is backed by a blend of commercial paper, cash deposits, U.S. Treasury bills and investments in cryptocurrencies.

 

Tether continued to emphasize that it’s reducing its current commercial paper portfolio – which it vows will reach $8.4 billion by the end of the month, adding:

 

“This will gradually decrease to zero without any incurrences of losses.”

 

The company also tried to downplay concerns that it could be affected by the struggles engulfing Celsius and Three Arrows Capital.