The issuer of stablecoin USDT, Tether, finally eliminated commercial paper from its reserves replacing these investments with U.S. Treasury Bills (T-bills).
According to the announcement, this is part of “Tether’s ongoing efforts to increase transparency, with investor protection at the core of the management of Tether’s reserves.”
Tether has slashed nearly $30 billion in commercial paper without incurring any losses, demonstrating how Tether’s reserves are “conservatively and effectively managed.”
Tether’s direct exposure to US Treasuries has also climbed by more than $10 billion in the recent quarter.
The USDT issuer stated that it maintains a diverse portfolio with limits on exposure to higher-risk assets.
Initially, in June, Tether refuted claims of its commercial paper portfolio as rumors were spreading around that 85% of it is backed by “Chinese or Asian commercial papers.” The stablecoin issuer had to refute claims again in July noting that “the spreading of false information is the biggest threat to the cryptocurrency industry that currently exists.”