Major stablecoin company Tether hopes to eventually get rid of the commercial fiat backing of its USD-based stablecoin Tether (USDT).

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leash published an official statement on Wednesday dismissing reports that Tether’s commercial paper portfolio is 85% backed by Chinese or Asian commercial paper and is trading at a 30% discount.

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The stablecoin firm called such claims “completely false,” reiterating that more than 47% of USDT’s total holdings are now “US Treasuries.” In its latest assurance, published in May, Tether reported this commercial paper makes up less than 25% of USDT’s support, which is about $21 billion as of March 31st.

Breakdown of USDT Supporting Assets. Source: Tether conclusion, published May 2022.
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According to the latest statement, Tether continues to reduce its current commercial paper portfolio, reducing its volumes to $11 billion. The firm expects to further cut it to $8.4 billion by the end of June 2022, aiming to eventually shed support for its commercial paper, it said in a statement:

“It will gradually drop to zero without any loss. All commercial paper is expiring and will be converted to short-term US Treasury bonds.”

Tether also referred once again to the recent crisis of the Celsius lending platform, noting that Celsius’s position was liquidated without loss to Tether. “At present, Tether has no connection to Celsius other than a small investment made from Tether shares in the company,” the firm said in a statement.

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Tether also claimed that reports that Tether has lending power to cryptocurrency venture capital firm Three Arrows Capital are also “categorically false.”