Tether Slashes Commercial Paper Holdings

Tether (USDT), the leading stablecoin issuer, has begun to reduce its commercial paper holdings, as promised earlier this year.

Tether cut its commercial paper holdings from $20 billion to $8.5 billion in the second quarter of 2022, a decrease of more than 58%, according to a new report from the company.

The report was conducted in collaboration with a BDO member company, one of the world’s largest public accounting networks.

Commercial papers are unsecured promissory notes with specified maturities that are typically issued by large institutions to cover their short-term debt obligations.

Tether intends to reduce its commercial paper holdings to around $200 million by the end of August, then to zero by the end of the year. The stablecoin issuer had stated that it intended to reduce its commercial paper holdings to zero by October/early November.

Tether also claims to have boosted its cash and bank deposit holdings by 32% in Q2.

Tether’s utility, according to the company’s CTO, Paolo Ardoino, is reinforced by the transparency of its reserves.

“Our commitment to transparency and the community is a long-standing pillar in the underlying ethos of the company and aligns with our responsibility as a market leader. We have once again demonstrated that commitment by aligning with BDO, one of the world’s top accounting firms.”

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