Documents released by the New York Attorney General revealed that Tether once backed USDT with Chinese securities.
According to documents released by the Attorney General, Tether owned securities issued by banks such as the China Construction Bank and the Agricultural Bank of China. There have been many rumors for a while that Tether is backing its stablecoin with Chinese securities. While the company remained silent on this issue, it denied that it held commercial papers issued by Evergrande in September 2021.
Documents Reveal Other Developments
Tether said in July that it does not hold any Chinese commercial securities.
The company criticized those who continued to spread false information on the subject at that time and said they were wrong. These documents, released by the New York attorney general at a freedom of information request, showed that the stablecoin issuer also owns securities issued by companies such as Deutsche Bank, Barclays Bank, and ArcelorMittal.
These published documents are part of data collected by the NYAG in its investigation into Tether, which resulted in a settlement and fine in 2021. The company claims to have removed all commercial papers from support of USDT since the litigation process in 2021.
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