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Tether claims US Treasury holdings are secure in response to WSJ’s bankruptcy accusation

Tether has released a reply to the questions and concerns brought up by a recent article published in The Wall Street Journal which claimed that the USDT issuer had insufficient reserves.

The financial statements of Tether that were made public on August 25 indicated that the company had assets worth $67.7 billion, compared to liabilities around $65.7 billion, for a difference of $191 million.

According to the assertions made in an article published by the WSJ, a “technical bankruptcy” might occur for the stablecoin issuer with just a 0.3% decrease in the value of the assets. In response, Tether said that the United States Treasury notes, which back over fifty percent of the USDT stablecoin, have been recognised as the most reliable asset class for the last several decades.

Additionally, Tether disputed reports that hedge firms were short-selling its currency in an attempt to undercut its liquidity. Tether, in an effort to defend the state of the reserve, said that a total of ten billion dollars’ worth of USDT was redeemed in a single week, which indicates that it is able to survive bank runs.

Tether has said that it is actively working with the accounting firm BDO to publish its attestation report on a monthly basis. This announcement comes after Tether reaffirmed its commitment to maintaining a transparent auditing process.

In the announcement, Tether highlighted that it has drastically decreased its holdings of commercial documents over the course of the preceding several months.

BDO Italia has validated that Tether’s commercial paper holdings have decreased by 58% over the last year. Tether had a total asset value of $66.4 billion as of the 30th of June, with just $8.5 billion held in commercial paper. Tether has said that it plans to get its commercial papers reduced to a total amount of no more than $200 million by the end of August.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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