Tether is aware of rumours being spread that its commercial paper portfolio is 85% backed by Chinese or Asian commercial papers and being traded at a 30% discount. These rumours are completely false and likely spread to induce further panic in order to generate additional profits from an already stressed market. Tether condemns such attempts which oftentimes see simple users take the biggest hit, while few coordinated funds increase their profits.
In its latest assurance opinion
here, Tether announced that over 47% of total USD₮ reserves are now US Treasuries and that commercial paper makes up less than 25% of USD₮’s backing.
Tether can report that its current portfolio of commercial paper has since been further reduced to 11 billion (from 20 billion at the end of Q1 2022), and will be 8.4 billion by end June 2022. This will gradually decrease to zero without any incurrences of losses. All commercial papers are expiring and will be rolled into US Treasuries with a short maturity.
Regarding the recent events impacting the Celsius lending platform, Celsius position has been liquidated with no losses to Tether. Tether’s lending activity with Celsius (as with any other borrower) has always been overcollateralized. Tether has currently zero exposure to Celsius apart from a small investment made out of Tether equity in the company.
Tether is aware of other rumours being spread, suggesting that it has lending exposure to Three Arrows Capital – again this is categorically false.
For the true facts, refer to our most recent attestation and to
https://tether.to/en/transparency
for the most up-to-date information.