Tether CTO Paolo Ardoino and general counsel Hoegnar appeared in a live media interview with CNBC to talk about Tether. The interview mainly focused on the reserves held by the tether to back Usdt and about its transparency.
The Tether executives didn’t answer Bosa’s question of whether Tether holds any Chinese commercial paper, but Hoegner said that the portfolio contains “international commercial paper”. The commercial paper is “overwhelmingly rated A2 or better,” he said, restating a previous statement.
When asked who rated the commercial paper, Hoegner said, “That’s S&P, Fitch. That’s across multiple … we rated that across multiple rating agencies.”
The executives denied disclosing any more details about the commercial paper Tether holds, saying that the company doesn’t identify its “commercial partners” and wanted to respect “the privacy of its banking partners.”
Tether CTO and general counsel were asked some pressing questions on the subject of USDT’s backing and transparency. He responded by saying,
“We are working towards getting financial audits, which no one else in the stablecoin sector has done yet.”
Hoegner stated that Tether is backed one-to-one with its reserves but admitted that those reserves were not all US dollars. According to Hoegner, Tether’s reserves are heavily dollar-weighted but also include cash equivalents, bonds, secured loans, crypto assets, and other investments.
Despite amounting inquiries demanding more transparency from Tether, Hoegner said in the CNBC interview that “We’re happy now with our relationship with Moore Cayman, by extension more global, and we are getting the attests and the market is getting the information and the transparency that it needs to make good, efficient decisions about what to hold.”
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Tether is a stablecoin that is pegged 1:1 with the U.S. dollar. This makes the coin’s value stable, as opposed to the value of cryptocurrencies like Bitcoin. The current market capitalization of USDT is 62 billion according to Tether’s transparency report. It has grown by 195% since the beginning of the year but has lagged behind rivals USDC and BUSD in terms of growth.