Tether Limits Commercial Paper To 3.7 Billion And Disallows Chinese Links
The topic of Tether’s reserves has been up for discussion for a while. Tether was charged in June of this year with having 85% of its portfolio of commercial papers backed by Chinese or Asian commercial papers.
The papers were apparently also being sold at a 30% discount. However, Tether denied these claims via an official blog post in June.
They stated:
“…over 47% of total USD₮ reserves are now US Treasuries and that commercial paper makes up less than 25% of USD₮’s backing.”
Regardless, Tether has now announced that they have reduced its commercial paper holdings from 30 billion in July 2021 to a measly 3.7 billion. The firm also reiterated that they do not hold any Chinese commercial paper.
Additionally, by the end of August 2022, the largest stablecoin issuer intends to further cut its holdings of commercial paper to 200 million. They also intend to have none by the end of October or beginning of November.
However, the corporation has assured its investors that it still maintains a varied portfolio. It also states that it restricts exposure to specific assets or issuers.
How did Tether cut back on its holdings of commercial paper?
The company disclosed in its June blog that, as of the end of Q1 2022, it held 11 billion in commercial paper, down from 20 billion. By June, they intended to get this number down to 8.4 billion. According to appearances, Tether seemed to have excelled itself.
All commercial papers that were about to expire were combined into US Treasury Bills, according to CTO Paolo Ardoino in June. He assured them that this would continue until all exposure to commercial paper was eliminated.
Controversy has always surrounded Tether’s reserves. Furthermore, Tether has not undergone audits on a regular basis like the Center’s USDC has. The corporation is also not very open about its reserves and investments. Thus, many have anticipated that USDC will soon dethrone USDT as the market’s leading stablecoin.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Annie
CoinCu News
Author
Uncategorized
Tether Limits Commercial Paper To 3.7 Billion And Disallows Chinese Links
The topic of Tether’s reserves has been up for discussion for a while. Tether was charged in June of this year with having 85% of its portfolio of commercial papers backed by Chinese or Asian commercial papers.
The papers were apparently also being sold at a 30% discount. However, Tether denied these claims via an official blog post in June.
They stated:
“…over 47% of total USD₮ reserves are now US Treasuries and that commercial paper makes up less than 25% of USD₮’s backing.”
Regardless, Tether has now announced that they have reduced its commercial paper holdings from 30 billion in July 2021 to a measly 3.7 billion. The firm also reiterated that they do not hold any Chinese commercial paper.
Additionally, by the end of August 2022, the largest stablecoin issuer intends to further cut its holdings of commercial paper to 200 million. They also intend to have none by the end of October or beginning of November.
However, the corporation has assured its investors that it still maintains a varied portfolio. It also states that it restricts exposure to specific assets or issuers.
How did Tether cut back on its holdings of commercial paper?
The company disclosed in its June blog that, as of the end of Q1 2022, it held 11 billion in commercial paper, down from 20 billion. By June, they intended to get this number down to 8.4 billion. According to appearances, Tether seemed to have excelled itself.
All commercial papers that were about to expire were combined into US Treasury Bills, according to CTO Paolo Ardoino in June. He assured them that this would continue until all exposure to commercial paper was eliminated.
Controversy has always surrounded Tether’s reserves. Furthermore, Tether has not undergone audits on a regular basis like the Center’s USDC has. The corporation is also not very open about its reserves and investments. Thus, many have anticipated that USDC will soon dethrone USDT as the market’s leading stablecoin.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Annie
CoinCu News
Other Posts
Related Posts
News
MicroStrategy Bitcoin Holdings Is Now Only 1/2 Of BlackRock And Fidelity’s
News
Hong Kong’s Approval: Bitcoin and Ethereum ETFs Set to Launch on April 30th!
News
