Tether Cut Commercial Paper Reserve by 17% in Q1, Report Says

The world’s largest US dollar stablecoin Tether said it reduced its commercial paper holdings in the first quarter of this year to improve the quality of its reserves. Tether Adds US Treasuries and Cuts Commercial Paper Holdings According to an official report on the status of its reserves since the sell-off, Tether said it had reduced its commercial paper to $19.9 billion from $24.2 billion the previous quarter, a 17% decrease. It also added U.S. Treasury bills, increasing them to $39.2 billion from $34.5 billion. The company added that it planned to cut its commercial paper by another 20%, which would be reflected in its second-quarter report. “This latest attestation further highlights that Tether is fully backed and that the composition of its reserves is strong, conservative, and liquid. As promised, it demonstrates a commitment by the company to reduce its commercial paper investments,” said Paolo Ardoino, the CTO of Tether, in a statement. Provider of the Biggest Stablecoin in the Market Tether is the provider of USD Tether (USDT), the biggest stablecoin in the crypto market. It maintains the value of its centralized stablecoin by a basket of assets, including corporate debt, US Treasury bills, and some cash reserves. The company had some difficulty dealing with investors over the recent TerraUST collapse. For instance, last week, USDT’s market cap dropped by about $9 billion amid a spike in redemptions of USDT for doll...