Tether responds to Chinese securities exposure reports.
The stablecoin issuer, Tether, has responded to reports that its reserves once included securities from Chinese companies. The reports, which were released by New York’s Attorney General and highlighted by Bloomberg, stated that Tether had previously held securities from state-owned firms such as the Industrial & Commercial Bank of China, China Construction Bank Corp., and Agricultural Bank of China. Tether has denied these claims, stating that they do not condone this behavior and that the materials obtained by the media outlets do not represent the company as it is now. They have clarified that their exposure to Chinese commercial papers was liquid and all issuers were stable, with the papers being used by some of the world’s biggest investment managers. Tether also noted that its exposure to commercial paper holdings was reduced to zero last year, and they did not lose any money on any commercial paper, including those issued by Chinese firms.