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Top cryptocurrency news: Tether asserts it holds zero Chinese commercial paper, denies 85 percent exposure

28-Jul-2022 By: Sudeep Saxena
Top cryptocurrency n

Tether, a major stablecoin issuer, has restated its intention to completely eliminate commercial paper backing for its USDT stablecoin.

In a blog post on Wednesday, Tether said that it now has no Chinese commercial paper, and that its overall commercial paper exposure has been reduced to $3.7 billion from $30 billion a year ago.
According to the statement, Tether intends to reduce commercial paper exposure to as low as $200 million by late August 2022, with zero commercial paper holdings by the end of October.
Tether maintains a diverse portfolio with limits on exposure to specific issuers or assets. Its decrease in commercial paper is a commitment to its community, the firm added.
The post came in reaction to the continuous FUD around Tether, with some claiming that Tether's commercial paper portfolio is 85 percent backed by Chinese or Asian commercial papers. Tether earlier rejected the reports in mid-June, claiming that they were completely false.
Tether stated in a recent blog post that misleading reports are the most serious threat to the cryptocurrency sector today.
In June, Tether CTO Paolo Ardoino noted that the USDT was the target of a coordinated attack by hedge funds attempting to short-sell the stablecoin. Tether, according to Ardoino, has been working with regulators to boost transparency and phase down its commercial paper exposure.
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