Tether: Reserves, highly liquid and highly qualified

Tether, the issuer of the largest stablecoin USDT, stated that after the agreement with the New York Attorney General's Office, it has completed its quarterly reporting obligations and will continue to keep the privacy and security of its customers above all else. Tether's bank relations and Chinese commercial paper (financial bond) connections were also mentioned in the blog post.
As it is known, CoinDesk requested that the materials related to Tether's first quarter report be made public. Tether had previously opposed this disclosure, but has now, in its own words, given up on it, demonstrating its commitment to transparency.
Tether company, the issuer of the USDT stablecoin, published a blog post yesterday titled “Everything You Need to Know About What We Share with NYAG”. The response came amid ongoing scrutiny and criticism over the transparency of Tether's reserve holdings. The statement emphasized the importance of transparency in the stablecoin industry.
The company noted that it demonstrated industry leadership during major “black swan” events in 2020 and 2022. It also stated that its reserves are highly liquid, high quality and ready for any size payback. In particular, he stated that in 2022, Tether repaid 7 billion dollars within 48 hours, and this amount constituted about 10 percent of its reserves at that time​.
Meanwhile, Tether and other stablecoin issuers have faced constant scrutiny and criticism for their lack of transparency regarding their reserve holdings. The lack of clear information has raised concerns within the cryptocurrency community and regulators. While Tether has consistently defended its operations, allegations of reserve support continued. A Bloomberg report revealed that Tether's reserves once included securities of leading Chinese state companies such as the Industrial and Commercial Bank of China, the China Construction Bank, and the Agricultural Bank of China. These disclosures have further added to doubts about Tether's transparency and asset support.
Chinese bonds reduced to zero
Documents released by the New York Attorney General's Office (NYAG) revealed that USDT once counted securities issued by China-based companies among its reserves. Fixedcoin issuer Tether has responded to reports that its reserves include securities once issued by Chinese state-owned companies. The company stated that the information presented is out of date and its commitment to Chinese financing bonds has been reduced to zero.
Media outlets, including Bloomberg, had published New York Attorney General's (NYAG) documents revealing that Chinese securities are backing Tether's USDT stablecoin. In its response, Tether stressed that the information presented by media outlets should be updated and reflect the current state of the company.
Tether explained that its commitment to Chinese financing bonds is liquid and stable with all issuers high ratings. Moreover, the stablecoin issuer underlined that its commitment to financing bonds was reduced to zero last year and there were no financial losses.
Tether's deal with NYAG and reserve report
In February 2021, Tether reached a settlement with the New York Attorney General's Office over accusations that it provided misleading information about its reserves and losses. The agreement included the provision of documents and information to NY AG that would shed light on Tether's reserves as of March 31, 2021. The certification report for Q1 2021 showed Tether's $81.8 billion holdings in U.S. Treasuries, Bitcoin, and over-collateralized loans, while not reflecting securities owned by Chinese companies. Tether's response aims to address the concerns raised in the reports and reassert the stability and transparency of existing reserve assets.
The integrity of the reserves emphasized
The company claimed that it would never compromise the integrity of its reserves, and this has been proven time and again by its ability to issue repayments without hesitation and the extreme transparency of its reserves.
It was also noted in the article that Tether's financing bonds always have a rating of A2 or better. On the other hand, it was underlined that the company is committed to accountability and maintaining the highest standards.
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