Cryptocurrency

Tether responds to WSJ’s insolvency claim, says its US Treasury assets are safe

The tether is responded Concerns raised by a recent article in the Wall Street Journal claiming USDT issuers have insufficient reserves.

Tether’s financial report released on August 25 showed assets of $67.7 billion and liabilities of $65.7 billion, a difference of $191 million.

wall street journal paper A mere 0.3% drop in asset value could lead to a โ€œtechnical bankruptcyโ€ for the issuer of the stablecoin, he said. In response, Tether said that US Treasury securities, which back more than 50% of the USDT stablecoin, have been the safest asset for decades.

Mr Tether said:

The assumption that 3-month worth of T-Bills is a risky asset is completely inconsistent with the longstanding fact that US Treasuries have been the safest asset in the world for decades.

Tether also refuted claims that hedge funds are selling short to undermine liquidity.To protect the reserve’s health, Tether said $10 billion The value of USDT will be redeemed in a week, demonstrating its ability to withstand bank crackdowns.

Tether reiterated its commitment to a transparent audit process and said it is actively working with accounting firm BDO to issue monthly certification reports.

Tether reduction commercial paper

Tether, mentioned in the statement, has significantly reduced its commercial paper holdings over the past few months.

BDOItaly Confirmed Tether’s commercial paper holdings decreased by 58%. As of June 30, Tether’s assets were his $66.4 billion and commercial paper was just his $8.5 billion.

Tether said it is working to reduce its commercial paper to $200 million by the end of August.

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