Market Analysis Report (14 Oct 2022) PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Market Analysis Report (14 Oct 2022)

Leading stablecoin issuer Tether has announced it eliminated its commercial paper holdings from its reserves, replacing them with U.S. Treasury bills. Per the firm, the move “demonstrates Tether’s commitment to backing its tokens with the most secure reserves in the market.”

As of September 30, the company’s U.S. Treasury holdings accounted for 58.1% of its total portfolio, up from 43.5% in June, according to Tether’s Chief Technology Officer Paolo Ardoino. Tether did not specify the current portfolio percentage allocated to U.S. T-bills.

Commercial paper is a form of short-term unsecured debt companies issue, where the value of the paper depends on the issuer. Commercial paper is less stable and secure than U.S. Treasury bunds.

Tether had announced it would bring its commercial paper holdings to zero by the end of the year in response to growing concerns over the stability of Tether and its USDT stablecoin.

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