Documents released by the New York Attorney General reveal that Tether Holdings Ltd., the issuer of the largest stablecoin USDT, once held securities.
Tether's Disclosure of its Past Holdings and Banking Relationships Aims to Address Concerns and Improve Transparency
According to the documents, Tether held securities issued by major state-owned Chinese companies such as ICBC, CCB, and Agricultural Bank of China, as well as securities from other companies like Deutsche Bank and Barclays Bank. Tether's banking relationships and lending activities were also detailed, showing significant loans to third parties and accounts held at various Bahamian banks. The documents provide insights into Tether's operations and its reserves as of March 2021. Tether faced speculation about its reserves during the tumultuous summer of 2022, but it reiterated its commitment to liquidity and debunked rumors about its commercial paper portfolio.
Tether's disclosure of its past holdings and banking relationships aims to address concerns and improve transparency. As stablecoins play a vital role in facilitating transactions and providing stability in the crypto space, maintaining trust in their reserves is crucial for market confidence.