Stablecoin issuer Tether has posted a lengthy response to reports that Tether reserves (USDT), one of the largest stablecoins, once included securities issued by Chinese companies.

On June 16, mainstream media, including Bloomberg, reported that the company once used to hold securities issued by Chinese state-owned firms. Bloomberg cited documents released by the New York Attorney General (NYAG) and highlighted that USDT was once backed by securities from firms such as Industrial and Commercial Bank of China, China Construction Bank and Agricultural Bank of China.

Everything you need to know about what we shared with NYAG

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— Tether (@Tether_to) June 16, 2023

On the same day, the USDT issuer responded to the news and wrote:

“The decision by Bloomberg, CoinDesk or any other media outlet to present this information to their readers was likely made in haste with little regard for current events or facts.”

According to Tether, they “do not condone this behavior”, adding that their priorities lie with their customers. The stablecoin issuer also noted that the materials obtained by the media do not represent the company as it is now. Tether said the data sent to media platforms is limited and older than two years.

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In addition, Tether also clarified that its exposure to Chinese commercial paper was liquid and all issuers were stable. The company also said the papers were used by some of the world’s biggest investment managers. “The Chinese bank paper in question was rated A1 or better,” they added.

The stablecoin issuer also noted that its exposure to commercial paper holdings was reduced to zero last year. According to Tether, it has not lost any money on any commercial paper. This includes commercial papers issued by Chinese firms.

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