The stablecoin company Tether said on Friday that it is reducing its holdings of commercial paper as planned. The stablecoin issuer said last month that it will be getting rid of all of its commercial paper assets in order to put an end to rumors.
Stop the rumors
According to initial plans revealed last month, it has met the goal amount of $8.4 billion in commercial paper and plans to continue reducing its holdings.
Tether will have $3.5 billion in commercial paper in its portfolio as of July 31 after $5 billion of its assets mature.
According to the report, treasury reserves will therefore account for a larger portion of the company’s reserves. For a brief period in May, the stablecoin lost its peg due to general market volatility.
Tether released a statement on June 15 to deny allegations that 85% of that portfolio was Asian and Chinese commercial paper selling at a steep discount, two days after bitcoin lending company Celsius said it was stopping withdrawals.
At the time, Tether stated its intention to sell all of its interests in commercial paper. A few days later, the USDT market cap hit an eight-month low of below $70 billion.
The USDT Tether stablecoin had access to $20.1 billion in commercial paper as of March 31. According to the company’s quarterly assurance opinion, its reserves were completely supported and the proportion of commercial paper in them was declining.
Given that they invented the idea in the realm of digital tokens, Tether tokens are the most extensively used stablecoins.
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Tether Tokens are a trailblazer in the digital usage of old currencies and a disruptor of the established financial system.
They also promote and empower new blockchain initiatives and innovations. The digital token known as Tether Tokens was created on many blockchains.
Tether tokens have gone a long way from being the first stablecoin to becoming the most widely used and one of the most actively traded tokens. Today’s most extensively used stablecoins across major exchanges, OTC desks, and wallets are tether tokens.
Source: https://www.thecoinrepublic.com/2022/07/03/tether-getting-rid-of-all-commercial-paper/