Stablecoin Issuer Tether Fulfills Promise by Reducing Commercial Paper Holdings Down to Zero – Bitcoin News

On October 13, 2022, Tether Holdings Limited announced that the stablecoin issuer had reduced the company’s commercial paper holdings to zero. The company has indicated it will achieve this goal for some time, and Tether said that shrinking commercial paper holdings to zero “represents Tether’s commitment to backing its tokens with the safest reserve on the market.”

Tether Axes worth $30 billion by Paper Trading Holdings, which uses US T-Bills instead

The company behind the largest stablecoin by market capitalization, Tether, has disclosure that USDTIts reserves are exposed to US Treasury Bills (T-Bills), as opposed to holding commercial paper. This announcement comes after a statement made by Tether’s Chief Technology Officer, Paolo Ardoino, on October 3.

Stablecoin issuer Tether fulfills promise by reducing Holdings paper trade to 0
The chart created by Tether shows the decrease in the stablecoin’s commercial paper holdings.

At that time, Ardoino explain that U.S. Treasury bills represent more than 58% of the company’s reserves, and he added ” [Commercial paper] exposure is [less than] 50 million right now. ” Management company USDTa stablecoin with a market valuation of around $68.53 billion, believes the decision to remove commercial paper holdings is positive for the entire crypto industry.

“The reduction of commercial papers to zero demonstrates Tether’s commitment to backing its tokens with the safest reserves on the market,” the company stated on Thursday. “This is a step towards even more transparency and trustworthiness, not only for Tether but for the entire stablecoin industry.”

Tether’s move follows Stablecoin Terra Crash 5 months ago, both Tether and Usd Coin have dropped billions of dollars since then

Tether’s move follows issues related to Terra . blockchain and the UST takedown event last May. Furthermore, a handful of stablecoins have fallen from the equivalent of $1 following the collapse of the UST. The news also follows the market capitalization of stablecoin USDC farts over the past few months down to today’s valuation of about $45.82 billion.

USDTIts market capitalization also dropped, following the collapse of Terra, as News report in mid-June, the quantity USDT in circulation decreased by more than 12 billion VND in two months. Despite the drops USDT and USDC in circulation, the stablecoins remain the top two stablecoin assets by market capitalization and the third (USDT) and the fourth largest crypto asset (USDC) by valuation.

Cards in this story

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What do you think about Tether fulfilling the company’s promise to reduce its commercial paper holdings to zero? Let us know your thoughts on this topic in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at News and a fintech journalist living in Florida. Redman has been an active member of the crypto community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written over 6,000 articles for News about the disruptive protocols emerging today.

Image credits: Shutterstock, Pixabay, Wiki Commons, Tether,

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