Tether (USDT), one of the largest stablecoins on the market, has lately made headlines for numerous reasons. However, it was not all for positive reasons. The previous auditor of the company received an objection for “improper professional conduct.”
In the meantime, the stablecoin issuer was requested to submit paperwork to the court in a proceeding. The network disclosed on October 3 that it had reduced its holding of commercial paper to less than $50 million in the midst of all of this.
However, in one of the most recent tweets, the official Twitter handle of Tether confirmed that it has eliminated $30 billion in insecure short-term debt without incurring any losses.
Tether says that it has brought commercial paper to zero
Commercial papers are, to put it simply, unsecured, short-term financial instruments that are often issued by businesses. Compared to US treasuries, commercial paper is “less stable.”
In May, the company’s commercial paper had a value of $20.1 billion. This further decreased to $8.5 billion at the end of June. By the end of the year, the corporation had said that it will reduce its commercial paper to zero.
As per the details from the recent announcement, that time of the year is here.
Tether states in its tweet that the elimination of $30 billion of commercial paper without any losses is proof of its professional reserve management. The company also mentioned that it had increased its US Treasury direct exposure by more than $10 billion in the previous quarter.
“This announcement comes as part of Tether’s ongoing efforts to increase transparency, with investor protection at the core of the management of Tethers’ reserves.”
Tether official statement
Tether further stressed the fact that its reduction of commercial paper to zero indicates its commitment to back its token with the most stable and secure reserves. Finally, the company’s goal to bring its commercial paper to zero is finally accomplished.