Tether disputes 85 percent exposure and claims it holds no Chinese commercial paper.
According to Tether, their exposure to commercial paper has decreased from $30 billion just one year ago to $3.7 billion overall.
Tether, a major stablecoin issuer, has repeated that it intends to totally get rid of the commercial paper backing for its USDT stablecoin denominated in dollars.
Tether stated in a blog post on Wednesday that it "holds no Chinese commercial paper as of today," and that its overall exposure to commercial paper has decreased from $30 billion to $3.7 billion over the past year.
According to the statement, Tether aims to have no commercial paper assets by the end of October by late August 2022, when it expects its exposure to be as low as $200 million.
"Tether continues to make sure that its exposure to specific issuers or assets is contained in a diversified portfolio. Its decrease in commercial paper demonstrates its dedication to the community, the company claimed.
The article was written in reaction to the continuous FUD surrounding Tether, which includes claims that its portfolio of commercial papers is 85% backed by Chinese or Asian commercial papers. In mid-June, Tether initially refuted the findings, saying that the claims were "absolutely incorrect.
Since March, Tether has sharply reduced its use of commercial paper.
Tether noted that the "greatest threat to the bitcoin sector that currently exists" is misleading news in its most recent blog post, adding:
The hazard is comparable to that posed by scams, hacks, or cyberattacks since the dissemination of false information imperils not just the reputation of the sector but also the reputation of every individual in the community.
Tether's chief technology officer Paolo Ardoino asserted in June that hedge funds attempting to short-sell the stablecoin had launched a "coordinated attack" on the USDT. According to Ardoino, Tether has been working with regulators to improve transparency initiatives and gradually reduce its exposure to commercial paper.