Tether backed by usd – USDT claims that most of its backing is in commercial paper, and connection to Celsius

There have always been questions about the true backing of Tether’s reserves, and rumours have claimed that 85% of its portfolio is held in Chinese and Asian commercial paper. On Wednesday, the company issued a statement denying these claims as “completely false” and so far, USDT has maintained its peg to the US dollar. 

Contrary to the rumours, Tether has stated that 47% of its USDT reserves are actually held in US treasuries. Prior to this, the company had reported that commercial paper backing accounted for just $20.1 billion of its holdings, which was lower than $30.8 billion in June last year. Tether CTO had further claimed that commercial paper holdings would be reduced to $8.4 billion by the end of the month. 

The Tether – Celsius connection

Tether was one of the first investors in Celsius back in 2020 when it contributed $10 million in equity investments. It has also been found to have loaned $1 billion to Celsius last year using Bitcoin as collateral. So, when Celsius halted customer withdrawals, investors feared USDT would suffer the same fate as UST. 

However, Tether has claimed that the loan had “always been overcollateralized” and that it wouldn’t have any impact on its reserves. Nevertheless, scepticism around stablecoins continues to threaten USDT and we still wait to see what comes of it.

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