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Usha Yadav
Jul 2, 2022
by Usha Yadav

USDT Issuer Tether Reduces Commercial Paper Reserves by Another $5B

Tether USDT

Table of contents

  1. Tether USDT - World's Biggest Stablecoin
  2. Tether Truthers
The USDT Stablecoins issuer, Tether, revealed that it would reduce its holdings of commercial paper by $5 billion by the end of July 2022, from $8.4 billion to $3.5 billion. The news follows Tether's announcement on May 19 that it has reduced its paper reserves, which fits into the company's plan to reduce its holdings of paper assets to zero and raise its proportion of US treasuries.

Tether USDT - World's Biggest Stablecoin

The largest stablecoin in the world is Tether's USDT, which has a market valuation of roughly $66.5 billion. The price of other assets, like the dollar, can be tracked using stablecoins, which are digital assets. Token holders should always be able to exchange their coins for dollars without any problems. Tether claims that USDT is 100% backed 1:1 by reserves. In the wake of Terra's demise last month, USDT temporarily lost its peg to the dollar, but Tether kept up with redemptions. It soon made a full recovery.

Tether Truthers

The condition of the company's reserves has been the subject of several rumors over the years. Tether has responded by publishing various announcements to increase its transparency in response to critics who call themselves "Tether Truthers" in the crypto community and claim that the stablecoin issuer may someday experience a bank run incident. In the company's portfolio of commercial paper, cash, and short-term deposits, treasury bills make up 55.53%, commercial paper is 28.47%, money market funds are 9.63%, cash is 5.81%, and reverse repurchase agreements 0.15%, and non-US treasury bills 0.41 %. These values are updated daily, and the auditor Moore Cayman publishes assurance opinions every three months.

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Tether USDT stablecoin Commercial Paper Reserves Tether Truthers
USDT Issuer Tether Reduces Commercial Paper Reserves by Another $5B
Usha Yadav
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

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