Tether, the issuer of USDT, the largest stablecoin pegged to the US dollar, has denied rumors about Chinese commercial paper, Celsius (CEL) and Three Arrows Capital.
In a statement posted on Tether's website on Wednesday, the company said it was "aware of rumors spreading that Chinese or Asian commercial papers account for 85% of its commercial paper portfolio and are trading at a 30% discount." Stating that it condemns such attempts to manipulate market prices, the following statement came from the company.
"The rumors about Tether that 85% of the commercial paper portfolio is backed by Chinese or Asian commercial papers and are traded at 30% discount" are completely unfounded and false.
These rumors are completely false and probably spread to increase panic in order to make additional profits from the already stressed market."
Tether also pointed to the assurance disclosure as proof of what its reserves consist of. According to the document, as of March 31, approximately 47% of USDT's reserves are US Treasuries, while commercial securities account for approximately 25% of the reserves. The company said the amount of commercial paper it holds has further decreased since its last assurance statement and will "gradually drop to zero".
"All commercial papers are due and will be transferred to short-term U.S. Treasuries."
The company also addressed rumors about its position on crypto lending platform Celsius, which stopped withdrawals after it came under pressure, and Three Arrows Capital, a major crypto hedge fund said to have gone bankrupt. Tether has announced that the rumors about Three Arrows Capital are false.
"The Celsius position was liquidated in Tether without any losses. Tether has not invested in Celsius at this time, except for a small investment from Tether equity in the company."