Tether Denies Rumors About its Commercial Paper Holdings

  • Tether said the rumor its commercial paper portfolio was 85% backed by Chinese commercial papers was “completely false and likely spread to induce further panic”.
  • The company also noted that it has reduced its portfolio to $11 billion, down from $20 billion in March, and that the goal was to eventually reduce its commercial paper backing to zero.
Tether (USDT) illustration


Stablecoin issuer Tether has denied rumors that its commercial paper portfolio — a form of short-term corporate debt — was 85% backed by Chinese or Asian commercial papers and traded at 30% discount, the company said in a blog post on 15 June.

According to the announcement, these allegations were “completely false” and likely spread to induce further panic in order to “generate additional profits from an already stressed market”. The company noted that more than 47% of of the total USDT reserves were now U.S. Treasuries, and that commercial paper only made up less than 25% of the stablecoin’s backing.

Tether also explained that it has continuously reduced its commercial paper portfolio, which back in March was at around $20 billion but has now been reduced to $11 billion. Tether noted that this number should go down to around $8.4 billion by the end of the month, with the goal being to gradually decrease the commercial paper portfolio to zero without incurring any losses.

Another rumor Tether denied is that it had lending exposure to Three Arrows Capital, saying it was “categorically false”. The crypto venture capital firm suffered significant losses last month — as it had invested heavily in the LUNA token — and is now reportedly struggling to avoid a potential insolvency after it was liquidated by top tier lending firms in the space.

The stablecoin issuer also mentioned the recent events around the Celsius lending platform, which on Monday paused all withdrawals, swaps, and transfers due to “extreme market conditions”. Tether has now liquidated its position in Celsius without losses, noting that there is “currently zero exposure to Celsius apart from a small investment made out of Tether equity in the company”.

Related Coverage
Celsius Pauses Withdrawals and Transfers, CEL Drops 55%
  • The company said the move was made “to protect and preserve assets”, and was caused by “extreme market conditions”.
  • Over the last few days the company has also moved massive amounts of wBTC and ETH from the Aave platform to the FTX exchange for unknown reasons.
June 13, 2022, 8:34 AM
CEL drops 55%


Tether Launches Mexican Peso-Pegged Stablecoin
  • Dubbed MXNT, the new stablecoin is aimed at Mexican companies, 40% of which were reportedly looking to “adopt blockchain and crypto”.
  • The fourth fiat-pegged Tether stablecoin will initially be available on the Ethereum, Tron, and Polygon blockchains.
Celsius Launches wETH Lending Pool on Maple Finance
  • Celsius has become the first CeFi platform to utilize Maple Finance’s DeFi infrastructure to facilitate a $30 million lending pool.
  • Celsius has also joined BlockTower, Orthiginal Trading, Maven 11 Capital, and Alameda Research as Pool Delegates on Maple.