Tether said it has reduced its commercial paper holdings to zero and will invest more in US Treasury Bills and short-term government debt.
Tether, the stable coin issuer, has removed commercial papers from its USDT reserve, according to its most recent reserve update.
Tether announced on October 13 that it has reduced its paper holdings to zero and will invest more in US Treasury Bills and short-term government debt.
Tether stated:
“Reducing commercial papers to zero demonstrates Tether’s commitment to backing its tokens with the most secure reserves in the market.”
Tether claims that holding its reserve in more secure assets will help increase transparency and provide greater protection for investors’ funds.
Tether also stated that it will increase transparency by disclosing USDT reserve details in its quarterly attestation reports.
The path to zero commercial paper
Tether has been chastised for a lack of transparency regarding the nature of the assets backing the USDT stablecoin since 2017. Rumors circulated in May that 85% of Tether’s reserves were held in Chinese commercial papers.
In response, Tether stated that its reserve is made up of less than 25% commercial paper and that it will be reduced to zero by the end of the year.
Tether announced in July that it had reduced its commercial paper portfolio to a low of $3.5 billion, from a previous high of $8.5 billion.
Tether reported that its paper holdings had fallen below $50 million by the end of September, after $3 billion of the holdings had expired.
To read our blog on “The removal of Tether’s $840 million celsius loan raises concerns,” click here