According to Cointelegraph, Tether, a stablecoin-issuer, wrote a response against the report which mentioned that Tether’s reserves (USDT $1.00), considered as one of the largest stablecoins, had included securities issued by Chinese companies.
With insights from Bloomberg, a media outlet, on June 16, 2023, the company made use of securities issued by Chinese state-owned firms. Supposedly, Bloomberg gave a reference to New York’s Attorney General (NYAG) quotes and highlighted that USDT was once backed by securities organisations such as the Industrial and Commercial Bank of China, China Construction Bank and Agricultural Bank of China, among others, Cointelegraph added.
“Ultimately Bloomberg, CoinDesk or any other media outlet’s decision to present this information to its readers was likely done in haste with little attention to current events or facts,” Tether explained, Cointelegraph highlighted .
It is believed that the company expects that the papers was used by some of the world’s biggest investment managers. Furthermore,“The Chinese banking-related commercial paper at issue was rated A1 or better,” Cointelegraph concluded.
(With insights from Cointelegraph)