Surprising China Detail in Tether (USDT) Investigation!

There is another new development in the cryptocurrency world. Accordingly, the new development is related to Tether. You already know Tether. The company that is the issuer of USDT. Let’s take a look at the details of our news.

China detail in Tether investigation

There are allegations that the New York Attorney General has released documents revealing that Tether Holdings Ltd, which issues the world’s largest stablecoin USDT, once owned securities issued by Chinese companies as part of its reserves. The announcement comes after years of speculation and scrutiny surrounding the assets that support the company’s stablecoin. There was a Bloomberg survey in October 2021. Accordingly, the company’s reserves allegedly contained billions of dollars of short-term loans given to Chinese companies. There was also evidence of a substantial loan to crypto platform Celsius Network. At the time, Tether denied claims that China Evergrande Group, hit by the crisis, owed money to it. But he has remained silent on other Chinese securities.

According to the documents disclosed, Tether, Industrial & Commercial Bank of China Ltd., China Construction Bank Corp. and Agricultural Bank of China Ltd. owned securities issued by leading state-owned Chinese companies such as The maturity dates of these securities ranged from 2020 to 2021. The company also held securities issued by companies such as Deutsche Bank AG, Barclays Bank Plc and ArcelorMittal SA.

Tether’s banking relationships

Tether’s banking relationships were also included in the document. Currently, Tether has accounts held at Deltec Bank & Trust, Ansbacher (Bahamas) Limited, Capital Union Bank and Far Eastern International Bank. The stablecoin issuer also holds reserve assets in funds in Bradbury Investment and Metis Global Partners. Additionally, the company has reserves in US dollars. It’s about Bitcoin held on Bitfinex. It also has reserves of over $2 billion in gold storage.

The documents also revealed the company’s key lending program, which includes lending in USDT to third parties. As of March 31, 2021, the program has reached $5.1 billion with collateral in the form of digital assets or securities. The quality of assets backing USDT has long been a matter of concern due to the stablecoin’s important role in the cryptocurrency markets. Investors rely on USDT, which has a circulation of approximately $83.5 billion, for liquidity and stability.

Response to allegations

Stablecoin issuer Tether has issued a lengthy response to reports that the company’s reserves are dwindling. The corresponding response includes the statement that news organizations pay little attention to the facts. In addition, attention is drawn to the materials in the hands of the media organizations that make the news. According to Tether, these materials are old and not representative of the company.

The company also said that the papers are used by some of the world’s largest investment managers. It also states that the Chinese banking-related securities in question are rated A1 or better. The company also stated that its exposure to commercial paper assets was reduced to zero last year. According to Tether, it hasn’t lost money on any commercial paper. When we look at Kriptokoin.com, this includes commercial papers issued by Chinese companies.