Stablecoin company Tether has released its reserve data after a legal fight to keep it private. The company stated that it had previously reported some data to the New York Attorney General’s Office (NYAG) as part of its settlement obligations in early 2021.
CoinDesk Requested Access
Afterwards, CoinDesk requested access to one of Tether’s reports. Tether initially opposed the request through legal action. However, it later dropped its opposition and allowed CoinDesk to receive the documents from the NYAG. Tether explained that it allowed the request to proceed because it is committed to transparency and openness over “time-consuming and unproductive American litigation.”
Documents Contain Information on Reserves
Tether stated that the documents contain information related to its reserves and investment activities. It also confirmed that these documents match earlier official reports but are now outdated. The company emphasized that it has cut commercial paper reserves to zero and reduced its secured loans portfolio since the original reports.
Tether Monitoring Market for Signs of Manipulation
Tether’s USDT stablecoin briefly lost its $1.00 peg, which the company called “suspicious.” It occurred the day that CoinDesk obtained the documents. However, CoinDesk has not yet published anything based on those documents as of UTC 11:45 p.m. Tether is monitoring the market for signs of manipulation and panic-spreading.
Tether originally aimed to protect customer privacy and restrict access to exploitable commercial information through its legal fight. However, it is now committed to transparency and openness in the face of legal battles. Tether hopes to restore trust in its stablecoin through increased transparency and by providing current and accurate information on its reserves and investments.