Tether, the company that issued the market’s largest stablecoin, USDT, said it condemns what it calls “false rumors” that its holdings include a large volume of Chinese commercial paper that supposedly trades at a price reduced. The company has also distanced itself from allegations about Celsius (CEL) and Three Arrows Capital.
In a statement posted to its website on Wednesday, Tether said it was “aware of rumors spreading that its commercial paper portfolio is 85% backed by Chinese or Asian commercial paper and is trading at a discount of 30%”.
“These rumors are completely untrue and likely conveyed to cause further panic to generate additional profits in an already strained market,” the company said, adding that it “condemns such attempts” to manipulate market prices.
Tether also referenced its latest assurance notice to prove what its reservations consist of. According to this document, as of March 31, about 47% of USDT reserves were made up of US Treasury bills, while commercial paper made up about 25% of reserves.
The company added that since the last assurance notice, its commercial paper holdings have been further reduced, and said they will “gradually decrease to zero.”
“All commercial paper is maturing and will be converted into short-term US Treasury bills,” the statement said.
Separately, the firm also addressed rumors that it would be exposed to Celsius, the struggling crypto lending and borrowing firm, which opted to suspend its withdrawals after being pressured, and to Three Arrows Capital, a major crypto hedge fund rumored to be insolvent.
“Tether currently has no exposure to Celsius, aside from a small investment made from Tether’s equity in the company,” the statement said, adding that rumors of its exposure to Three Arrows Capital are “categorically false”.
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