Tether Team Denies WSJ Statement About Unreliable USDT Reserves

The issuer of the USDT stablecoin, in response to criticism from Wall Street Journal experts, said that pegging the stablecoin to the US dollar is quite reliable.

The Tether team announced that the publication of the American WSJ is "nothing more than a series of unsubstantiated conclusions." The issuer claims that the portion of the reserves that peg the stablecoin to the dollar, consisting of US Treasury bills, is completely safe.

“The suggestion that three-month Treasury bills are a safe asset is completely at odds with the fact that U.S. bonds have been the top safe asset in the world for the past several decades,” the issuer said in a statement.

The Tether team accuses the publication of biased coverage of risk policy and claims to use reserve collateral similar to that of other stablecoins:

“The fact that a similar margin is being extended to other stablecoins in the market further highlights the publication’s intent to attack Tether and damage its reputation.”

Tether claims to be fair and transparent in disclosing information to users. In the near future, he intends to conduct an audit, which investors expect.

“The problem is that the developers of international accounting standards have not yet released a standard for accounting for digital assets (including stablecoins) and have not determined whether cryptocurrencies should be considered in terms of regulatory capital requirements of regulated organizations (which apply fractional reserves),” noted issuer.  

Tether believes that the attestation structure is the same for any industry or business and extends well to the crypto industry.

Recently, analysts at investment bank JPMorgan found that, as of May, stablecoin providers Tether and Circle collectively held more than $$80 billion in short-term US government bills.