Tether plans to reduce support for USDT securities

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Tether company, stablecoin issuerUSDT, said it hopes to completely eliminate the "commercial paper backing" of its US dollar-pegged stablecoin in the future.

In an official statement, the company denied
messages that the securities portfolioTether is 85% backed by Chinese or Asian commercial paper and trades at a 30% discount. The company repeated previously announced data that 47% of total USDT reserves are US Treasuries.

In May, Tether stated that the securitiesrepresent only 25% of USDT support – about $21 billion as of March 31. From the announcement it follows that the company continues to reduce its current portfolio to a share of securities of $11 billion. By the end of June, this share should be reduced to $8.4 billion:

“We will gradually reduce this share to zero withoutany damages. All commercial securities have an expiration date and sooner or later they will be converted into short-dated U.S. Treasuries.”

Tether representatives stated that they are no longerhave nothing to do with Celsius. The lending platform's recent crisis has led to the platform suspending withdrawals, exchanges and transactions of digital assets due to "extreme market conditions."

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Previously technical director of a crypto exchangeBitfinex and Tether Paolo Ardoino stated that the USDT stablecoin is a tool of freedom and a way to use Bitcoin in real life.