The largest stablecoin in the crypto market, Tether [USDT] has been making news for an array of reasons lately. Sadly it wasn’t all for the right reasons. The firm’s former auditor was called out for “improper professional conduct.” Meanwhile, the stablecoin issuer was urged to present documents before the court in an ongoing case. Amidst all of this, the network revealed that it cut its commercial paper holding to less than $50 million.
In a recent Twitter thread, the CTO of Tether Paolo Ardoino noted that the network pushed its holding of U.S. Treasuries to 58.1% on the 30th of September. It should be noted that this was a surge from 43.5% as of 30th June 2022.
Commercial papers are nothing but short-term debt instruments that are usually unsecured and issued by corporations. Unlike US treasuries, commercial papers are “less stable.”
Back in May, the firm’s commercial paper value was at $20.1 billion. This was further depreciated to $8.5 billion by the end of June.
Will Tether slash its commercial paper holdings to zero?
Back in August, the firm noted that it intends to cut its commercial paper exposure down by $200 million by the end of the month. In addition to this, the firm revealed that this would drop to zero before the year ends.
Speaking about the same, Ardoino previously stated,
“The utility of Tether continues to be supported by the transparency of its reserves and has been a leading source of stability allowing us to build a tool for the global economy. Our commitment to transparency and the community is a long-standing pillar in the underlying ethos of the company and aligns with our responsibility as a market leader.”
With this in play, Tether has been prepping to present documents including balance sheets, general ledgers, income statements along with cash-flow statements before the New York Court.