Tether's chief technical officer, Paolo Ardoino, announced the news in a tweet on October 3. Commercial papers are short-term debt instruments issued by businesses.
with less than $50M in commercial paper units as of September 30, 2022.
Tether's chief technical officer, Paolo Ardoino, announced the news in a tweet on October 3. He added that Tether's holdings of US Treasury bills increased to 58.1% of its total portfolio, up 25.1% from 43.5% on June 30.
Commercial papers are short-term debt instruments issued by businesses that are often used to fund a variety of commercial operations. Meanwhile, treasury bills are said to be more stable than commercial papers since they have "zero default risk" because investors are guaranteed to regain their purchasing price.
Tether said in June that it wanted to reduce the commercial paper backing of Tether (USDT) to "zero," and roll it into short-maturity U.S. Treasury notes.
The stablecoin issuer has also sought to improve openness on its dollar reserves and backing.
In July, it appointed European accounting firm BDO Italia as a new auditor to independently assess its stablecoin reserves in order to increase transparency and more routinely disclose audit and attestation reports.
On September 19, a United States District Court in New York ordered Tether to give evidence proving USDT's 1-to-1 backing in US dollars.
When asked how Tether's transparency report will be updated, Ardoino stated that the timeframe is generally 45 days but that the company's new auditor will enhance the process and shorten that schedule.
Tether's aim to decrease its commercial paper holdings to zero by the end of 2022 is well underway, with the corporation cutting its reserves from 20B units in Q1 2022 to 8.4B units in Q2 2022.
According to CoinGabbar statistics, USDT is currently the largest stablecoin, with a market valuation of $67.95 billion, the third highest of all digital assets.
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