Tether Cuts Its Commercial Paper Holdings

Ethereum and Blockchain-based cryptocurrency Tether is known to have minimized its commercial paper holdings by $6.2 billion in the last quarter of 2021.  Meanwhile #Tether divests itself of highly risky commercial paper… Tether stands to go bankrupt if they hold evergrande bonds. (they’ve lied several times about their holdings) Short Squeeze Imminent.(2 of 2)@metzler_dr @michaeljburry pic.twitter.com/TBLXRlkQxP — The Butcher of Wall Street | Marcel Kalinovic (@BossBlunts1) April 13, 2022 Years together, the cryptocurrency firm Tether was persistent to share that each of its USDT coins was supported by 1 US Dollar. As Tether began issuing “transparency reports” depicting its reserves constituting cash, crypto tokens, bonds, cash equivalents, and commercial paper.  Regulators were concerned that stablecoin Tether wasn’t as stable, mostly due to the firm not announcing in detail the debts the company holds. However, in an interview, the CTO of Tether Paolo Ardoino stated that the company is scaling back its reliance on commercial paper and continue cutting down on its reserves as well. How Is It Problematic? Federal Reserve Chairman Jerome Powell explained why a stablecoin like Tether holding a large number of reserves in debt can be an issue.  He explains commercial paper as short-term obligations via companies that can be either investment grade or liquid. Either of the scenarios is good for stablecoin, however, it hasn’t been the same since the financial crisis of the 21st century.  Tether’s Most Recent Breakdown Reportedly, the largest stablecoin issuer, Tether cut its assets held in commercial paper from $30.5 billion in September to $24.2 billion in December. Additionally, Tether also reduced its cash assets, from $7.2 billion to $4.2 billion.  The cryptocurrency firm has allocated its reserves to Treasury bills, now by almost doubling assets in short-term government securities from $19.4 billion to $34.5 billion.

The post Tether Cuts Its Commercial Paper Holdings first appeared on Cryptoknowmics-Crypto News and Media Platform.

The post Tether Cuts Its Commercial Paper Holdings appeared first on Cryptoknowmics-Crypto News and Media Platform.

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