Tether: No losses on any commercial paper, including commercial paper issued by Chinese companies

ChainCatcher news, stablecoin issuer Tether issued a statement in response to FUD, stating that Tether has never and will never jeopardize the integrity of its reserves. This is reflected not only in Tether's steadfast ability to honor redemptions but also in the maximum transparency of its reserves.

Tether's commitment to maintaining the highest standards extends to the risk indicators and risk measurement processes it has developed. These mechanisms enable its investment and finance teams to thoroughly assess the risks associated with any financial interactions of the company. With an understanding of the lending business and regulatory environment, Tether actively works to achieve and maintain its business objectives while adhering to its risk management culture.

Additionally, Tether's commercial paper has consistently maintained an A2 rating or higher. There has been no change to Tether's past statements. Tether remains steadfastly committed to accountability and maintaining the highest standards.

Regarding the recently disclosed documents, Tether makes the following clarifications:

• In the documents, Tether's statements demonstrate the complete existence of its banking relationships and reserves, as evidenced by independent third-party assurances publicly disclosed by Tether;
• These documents show how Tether applies top-tier asset management concepts: short-term investments and diversification, which can be clearly seen from the investments listed in various bank statements;
• These materials do not represent Tether's current situation (as the data received by the media only provides a limited view of old data, over 2 years old). Among other measures, Tether reduced its commercial paper holdings to zero by mid-2022 and significantly decreased its secured loan portfolio, aiming to bring it down to zero in the coming months.

Related evidence also shows that Tether has gradually reduced its secured loans from 8.7% to 6.5%, with Tether holding over $53 billion in U.S. Treasury bonds, reaching a historic high, accounting for over 64% of its total reserves.

Furthermore, Tether regularly collaborates with law enforcement, assisting in over 150 investigations across four continents. In just the past 18 months, at the request of regulators and law enforcement, Tether has recovered approximately $200 million in U.S. dollars and returned it to rightful owners.

At the same time, Tether again denies having exposure to Evergrande and explains that its exposure to Chinese commercial paper is primarily concentrated in the banking sector, but all Chinese paper held is liquid and issued by well-known large issuers in the international commercial paper market. All these issuers are stable, and most of these bonds have historically and currently been held by some of the largest investment managers in the world, belonging to conservative portfolios. The Chinese banking-related commercial paper involved in Tether's previous reserves was rated A1 or higher.
Additionally, Tether reduced its commercial paper holdings to zero last year. Tether has not lost a single penny on any commercial paper, including that issued by Chinese companies. (Source link)