Biggest Crypto Stablecoin Tether Was Once Backed by Chinese Securities

Tether Holdings once held Chinese securities among the reserves backing its USDT stablecoin. The quality of assets backing USDT has been under scrutiny over the years

June 16, 2023 . 12:30 PM

1 min read

Tether Holdings Ltd. held securities issued by Chinese companies among the reserves backing USDT stablecoin.
Tether denied having any exposure to crisis-hit China Evergrande Group's debt but declined to say whether it held securities of other Chinese companies or issuers.
Traders use the USDT stablecoin to move money into and out of cryptocurrency markets, swap funds between exchanges and as a haven in times of high volatility.
Tether maintained bank accounts at Deltec Bank & Trust, Ansbacher (Bahamas) Limited, Capital Union Bank and Far Eastern International Bank for assets backing USDT.
Tether's lending program reached $5.1 billion and had fewer than 30 borrowers as of March 31, 2021.