Tether Cuts Its Commercial Paper Holding To Less Than $50 Million
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Tether Commercial Paper Holding
Commercial papers are short-term unsecured financial obligations issued by businesses, and their value is based on the issuing company. Commercial papers are less stable than other debt securities, such as U.S. government treasuries.
Due to mounting worries about the safety of its ecosystem and its stablecoin USDT, Tether had earlier declared that it would reduce its holdings of commercial paper to zero by the end of the year.
Commercial papers that the corporation possessed in May totaled $20.1 billion, but by June 30, they had dropped to $8.5 billion. The USDT issuer hired BDO Italia as a new auditor to handle its routine attestation reports. A New York court judge recently gave the company the go-ahead to provide financial data about the support of USDT.
Ordered to Produce Documents Showing Backing of USDT
As part of a complaint that claimed Tether colluded to release the stablecoin to raise the price of Bitcoin (BTC), a U.S. judge has ordered Tether in New York to submit financial information connected to the backing of USDT. According to the order, Tether must provide "general ledgers, balance sheets, income statements, cash-flow statements, and profit and loss statements," as well as documentation of any transactions it has made using cryptocurrencies or other stablecoins. Additionally, it directed Tether to divulge information on its accounts with Bitfinex, Poloniex, and Bittrex.