According to a blog post, Tether, the biggest stablecoin in the world, has reduced its holdings of commercial paper to zero and replaced them with U.S. Treasury notes. The well-known dollar-pegged cryptocurrency tether claimed that the action is a part of its “ongoing efforts to promote transparency” and backs its tokens with “the most secure reserves in the market” — with the ultimate goal of providing investor protection.
“Tether has led the industry in transparency releasing attestations every three months, constantly reviewing the make up of its reserves,” continued the statement.
Tether’s comment on commercial paper
Commercial paper is short-term unsecured debt that businesses issue; the value of the paper depends on the entity that issued it. As a result, commercial paper is less stable than other debt securities like U.S. Treasury bonds.
Tether has previously stated that it would get rid of all of its holdings in the commercial paper by the end of the year due to rising worries about the stability of the USDT stablecoin and the Tether ecosystem as a whole.
Tether refuted allegations that Chinese or Asian commercial paper accounted for 85% of its portfolio of commercial paper in June. The business also stated at the time that it would eventually eliminate its exposure to commercial paper. However, in the following months, Tether released regular updates revealing a substantial decline in its reserves of commercial paper.
What does the CTO have to say?
Tether’s CTO, Ardoino, expressed excitement about the upcoming Lugano Plan B forum conference, focusing on bitcoin. Big-name figures in the bitcoin community will be present at the conference, including Adam Back of Blockstream, computer scientist Nick Szabo, and bitcoin specialist Jimmy Song.
Tether and the city of Lugano have teamed up to support the adoption of bitcoin throughout the city, from businesses accepting bitcoin payments to the city accepting it for tax payments.
