Tether decreases commercial paper holdings to enhance reserve quality
According to Tether, the stablecoin issuer, the first quarter of this year saw it drop its commercial paper holdings.
A 17 percent drop in commercial paper from $24.2 billion in the previous quarter was disclosed by Tether today. In addition, it contributed $39.2 billion in U.S. Treasury notes, bringing the total to $39.5 billion.
Second-quarter financial results will show that the corporation has lowered its commercial paper by another 20%.
There were concerns about the quality of Tether’s reserves in October when Bloomberg reported that much of the company’s commercial paper had been issued by large Chinese corporations. The identities of those companies have not been revealed by Tether.
The largest stablecoin in the crypto market is provided by Tether (USDT). They do this by employing a variety of assets, like as corporate debt and US Treasury notes, to sustain the value of their controlled stablecoin.
Tether has $82 billion in reserves as of March 31st, according to a quarterly attestation report, with cash reserves and bank deposits accounting for $4 billion of that total. According to CoinGecko, its current market capitalization is $74 billion.
Investors’ concerns regarding TerraUST’s recent demise were tough for the corporation to manage. USDT’s market value has fallen by around $9 billion in the past week due to an increase in USDT withdrawals for dollars. As of May 12, the corporation said that it will fulfil all redemptions as evidence of its financial stability.