Stablecoin issuer Tether has said that it holds no Chinese commercial paper.
Tether outlined that it has reduced its commercial paper exposure by $4.7 billion since the start of this month.
Tether currently holds $3.7 billion of commercial paper in its reserves, down 88% from $30 billion in July 2021.
Tether has never explicity denied that it had exposure to Chinese commercial paper.
In September 2021, it denied that it had any exposure to commercial paper issued by troubled Chinese real estate giant Evergrande.
Yet in October 2021, Bloomberg reported that Wall Street traders were unaware of any new entrant buying up large amounts of commercial paper (Tether’s holdings would have made it the seventh-largest holder of commercial paper).
In June 2022, Tether denied rumors that the majority of its commercial paper was Chinese or Asian but it did not specify whether it had any exposure in general.