Tether pushes back at WSJ doubts on its reserves USDT

In response to the Wall Street Journal alleging that Tether’s USDT stablecoin is not adequately backed by reserves, Tether called the report a series of “unsubstantiated conclusions” that tried to “discredit Tether’s work on transparent and honest communications to the public.”

Tether said the assumption that three-month Treasury bills are an unsafe asset goes against “the longstanding fact that U.S. Treasuries have been the world’s premier safe asset for the past several decades.”

Tether also said it is wrong to assume that its business is unprofitable, as it has been profitable for several years, although the equity was never disclosed.

Tether said its reserve margin also applies to other stablecoins, while the WSJ report only addresses Tether.

Tether stressed that it can easily redeem over US$16 billion of issued tokens as a testament to its solvency. It claimed that it has reduced its risk exposure to short-term commercial paper.

In a report last week, the WSJ claimed Tether has issues including high-risk assets such as digital currencies, low capital cushion, and reserve reports that lack detail and frequency.

Paolo Ardoino, Tether’s chief technology officer, said a full audit, a measure to make its reserve and financial position transparent, is still “a few more months away”.

Tether did not immediately respond to Forkast’s request for further comments.

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