The stablecoin USDT’s issuer, Tether, is reported to have continued a trend that began months ago by further reducing the portion of its portfolio exposed to commercial paper in favor of US Treasury bonds that are believed to be more liquid. In the present, the latter would account for more than 58% of USDT reserves.
Tether lowers its holdings of commercial paper to less than $50 million.
According to a statement made by Paolo Ardoino, technical director of Tether, the company that is the issuer of the stablecoin USDT has decreased the amount of commercial paper it has to less than $50 million. A signal that is meant to be positive but does not prejudge the company’s goal, which has been declared to be to have no detentions by the end of the year.
Keep in mind that commercial paper is unsecured short-term debt issued by businesses. Tether has angrily refuted a recurrent myth that claimed Asian firms, particularly faltering Chinese real estate behemoth Evergrande, held 85% of its portfolio of non-cash assets.
In any case, as of September 30, according to his tweet, US Treasuries will account for 58.1% of USDT reserves, a significant increase from 43.5% on June 30. It should be noted that these percentages are not yet displayed on the corporate website’s “Transparency” page since, according to Ardoino, it takes 45 days for the official report to be published. We want to trust it, but with Tether, scepticism is always in order given its painful past with the truth, especially when it comes to the type of assets that the USDT is backed by. Additionally, we shall wait for the audit that has been promised but consistently delayed in order to validate Ardoino’s theory.
USDT makes gains.
Even in the face of a conquering USDC, which has subsequently lost its sheen due to an overzealous desire to work with law authorities in the Tornado Cash case, the USDT appeared to be losing steam for lengthy months. and it strengthened its position as the top cryptocurrency exchange by being barred from trading pairs on Binance. With its second of roughly $20 billion, it now has a capitalization of close to $68 billion, extending the gap. There were just 10 billion people between them at the height of their competition.