Tether [USDT], the biggest stablecoin on the market, has recently made headlines for a number of different reasons. Sadly, not all of it was done for the right reasons. The former auditor of the company received criticism for “improper professional conduct.” In the meantime, the stablecoin issuer was urged to submit paperwork to the court in a proceeding. The network disclosed that it has reduced its holding of commercial paper to less than $50 million in the midst of all of this.
Tether’s CTO Paolo Ardoino recently mentioned on Twitter that the network increased its holding of U.S. Treasuries to 58.1% on September 30. Remember that this was an increase from 43.5% as of June 30, 2022.
Simply said, commercial papers are unsecured, short-term financial instruments that are typically issued by corporations. Commercial papers are “less stable” than US treasuries.
The company’s commercial paper value was $20.1 billion in May. By the end of June, this had further declined to $8.5 billion.
Tether to nullify its commercial paper holdings?
The company announced its intention to reduce its exposure to commercial paper by $200 million by the end of the month back in August. The company also disclosed that this would reach zero before the year is over.
Earlier, Ardoino said the following in relation to the same,
“The utility of Tether continues to be supported by the transparency of its reserves and has been a leading source of stability allowing us to build a tool for the global economy. 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.”
In light of this, Tether has been preparing to submit financial records to the New York Court, including balance sheets, general ledgers, income statements, and cash-flow statements.