Main stablecoin issuer Tether has reiterated that the corporate plans to utterly rid itself of economic paper backing for its U.S.-dollar stablecoin USDT.

In a weblog submit on Wednesday, Tether said it “holds no Chinese language business paper as of immediately,” whereas its complete business paper publicity has been lower to $3.7 billion from $30 billion one yr in the past.

By late August 2022, Tether mentioned it plans to lower business paper publicity to as little as $200 million, focusing on zero business paper holdings by the tip of October, the assertion reads.

“Tether continues to make sure that it has a diversified portfolio with limits to publicity on particular person issuers or property. Its discount in business paper is a dedication to its group,” the agency mentioned.

The submit got here in response to the continued FUD round Tether, with some reviews alleging that Tether’s business paper portfolio is 85% backed by Chinese language or Asian business papers. Tether beforehand denied the reviews in mid-June, stating that such allegations had been “utterly false.

Tether continues to cut back business paper in sharp discount since March

Within the newest weblog submit, Tether identified that false reviews pose the “largest menace to the cryptocurrency trade that at present exists,” including:

“It’s a menace of the identical concern as scams, hacks or cyberattacks as a result of the spreading of false info dangers not solely the status of the trade but additionally every member of the group.”

In June, Tether chief expertise officer Paolo Ardoino claimed that the USDT has been the topic of a “coordinated assault” by hedge funds seeking to short-sell the stablecoin. Ardoino mentioned that Tether has been collaborating with regulators to extend transparency efforts and part out its business paper publicity.