Tether Claims To Save China's Securities In Reserve Funds For USDT Topang

Tether, the publisher of the USDT stablecoin, admitted that his party kept a number of Chinese securities. (Photo; Doc. Cryptomundo)

JAKARTA - Tether, a company that lists USDT stablecoins, revealed that they in 2021 keep Chinese securities in reserves that support the cryptocurrency.

Documents provided to the New York Attorney General's Office reveal this as part of a settlement between Tether and the legal authorities. Letters, bank accounts, reserve ownership, wallet addresses, and money laundering detection methods are contained in the document. Tether also reported the state of its assets on March 31, 2021.

The settlement of Tether with the New York Attorney General's Office involves the obligation to report reserves every quarter for two years. This obligation ends on June 15 and Tether has officially fulfilled it.

Initially, Tether refused a request to open this document for customer privacy reasons, but then lifted the refusal to increase transparency with the crypto community. Tether still reminded the media not to release sensitive information such as client details.

In the document, it was revealed that Tether kept Chinese securities issued by Chinese state-owned entities, such as Industrial & Commercial Bank of China Ltd, China Construction Bank Corp, and Agricultural Bank of China Ltd. Tether also has securities issued by major European lenders, including Deutsche Bank and Barclays.

Most of the Chinese securities are due in 2020 and 2021, according to the documents released. Tether explained that they have consistently reduced their exposure to the securities and are no longer keeping Chinese securities in USDT reserves.

Tether is trying to increase transparency with the crypto community through this settlement. Although they lifted the rejection of FOIL's request, Tether still warned the media to be careful in releasing sensitive information.

The company also released a blog explaining the various points that have been raised by the media and provides an explanation of decisions taken in the past. Tether insists that they have reduced exposure to Chinese securities to zero and are no longer keeping the asset in their USDT reserves.