Friday, May 9, 2025

Tether Calls Rumors False, Aims to Decrease Commercial Paper Backing To Zero

In a statement released on Wednesday morning, Tether called rumors about its commercial paper backing “completely false,” and said these stories were spread around to “induce further panic in order to generate additional profits from an already stressed market.”

The rumors allege that Tether’s commercial paper portfolio is 85% backed by unsecured, short-term debt issued by companies,  and that it traded at a 30% discount. The stablecoin firm linked to its most recent assurance opinion that showed that commercial paper makes up less than 25% of its USDT or its currency’s backing, and that 47% of total USDT reserves are US Treasuries.

Tether firm also said that its current portfolio of commercial paper has been reduced from US$20 billion at the end of Q1 2022 to US$11 billion, and will be around US$8.4 billion by the end of June. They are targeting to gradually decrease their commercial paper backing to zero, but did not give a time period for this goal.

From Tether’s latest assurance opinion

The statement also addressed the recent Celsius crisis and said that their position has been “liquidated with no losses to Tether,” save for “a small investment made out of Tether equity in the company.” 

Tether also denied that it has lending exposure to Three Arrows Capital, which is currently facing a potential insolvency.

Crypto traders and analysts, meanwhile, are keeping watch and bracing themselves for the possibility of Tether joining what’s now called the crypto bloodbath.


Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

SEC’s Crypto Enforcement Heats Up: More Actions on the Horizon

The US Securities and Exchange Commission (SEC) is intensifying its pursuit of crypto exchanges and...

Wednesday, September 20, 2023, 03:53:00 PM

Canada Kills The Anonymity Case For Crypto

In what may be the largest blow to the use case for cryptocurrencies globally, it...

Wednesday, February 23, 2022, 05:02:11 PM

Binance Is Delisting USDC, USDP, TUSD Stablecoins From Its Platform To “Enhance Liquidity”

Beginning September 29, holdings in leading stablecoins on Binance’s platform will be auto-converted to its...

Tuesday, September 6, 2022, 12:47:00 PM

Celsius Looks At Selling US$23 Million In Stablecoin Holdings For Its Bankruptcy Process

Celsius Network filed on Thursday with the court holding its bankruptcy hearings a request to...

Friday, September 16, 2022, 03:16:00 PM

Quebec-Based Pension Manager Writes Off $150 Million Celsius Network Investment

Quebec pension manager Caisse de depot et placement du Québec (CDPQ) has written off its...

Friday, August 19, 2022, 02:57:00 PM