USDT issuer Tether Holdings Ltd. reportedly held Chinese company securities as reserves, as revealed by Bloomberg. This unveils Tether’s reserve composition and its ties to the Chinese securities market, while the details and status of these holdings remain undisclosed.
New York’s Attorney General has disclosed documents showing that Tether Holdings Ltd., the issuer of the prominent stablecoin USDT, previously held securities from Chinese companies as part of its reserves. This revelation follows years of speculation and scrutiny regarding the assets supporting Tether’s stablecoin.
New York’s Attorney General reveals details of Tether’s holdings
Bloomberg’s investigation in October 2021 revealed Tether’s potential involvement with short-term loans to Chinese companies and a significant loan to Celsius Network. Tether denied exposure to China Evergrande Group’s debt but did not address its holdings of other Chinese securities.
The disclosed documents revealed that Tether held securities from notable state-owned Chinese companies, including Industrial & Commercial Bank of China Ltd., China Construction Bank Corp., and Agricultural Bank of China Ltd. These securities had maturity dates ranging from 2020 to 2021. Tether also held securities from companies like Deutsche Bank AG, Barclays Bank Plc, and ArcelorMittal SA.
The disclosed documents outlined Tether’s banking relationships, which included accounts at Deltec Bank & Trust, Ansbacher (Bahamas) Limited, Capital Union Bank, and Far Eastern International Bank. Tether also held reserve assets in funds at Bradbury Investment and Metis Global Partners. In addition to reserves in US dollars, Tether held Bitcoin on Bitfinex, an affiliated crypto exchange, and had over $2 billion worth of reserves stored in gold.
The disclosed documents unveiled Tether’s substantial lending program, where loans in USDT were issued to third parties. By March 31, 2021, the program had reached $5.1 billion, backed by collateral in the form of digital assets or securities.
The quality of assets backing USDT has been a matter of concern given its significant role in cryptocurrency markets. With a circulation of around $83.5 billion, USDT serves as a crucial source of liquidity and stability for traders.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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