Tether Cuts Down Commercial Paper Exposure and Introduces U.S T-Bills

Blockchain-enabled platform Tether announced that it has completely cut down the use of commercial papers in its reserve and has started investing in the U.S Treasury Bills for its stablecoin reserve.

Treasury Bills tagged T-Bills. The USDT stablecoin issuer takes this measure to address the subject of a long-standing bone of contention among detractors who have always criticized the quality of its reserves.

Specifically, Tether aims to improve customers’ transparency as a means of ascertaining the protection of investors which is core to the management of the platform’s reserve. 

“Reducing commercial papers to zero demonstrates Tether’s commitment to backing its tokens with the most secure reserves in the market. This is a step towards even greater transparency and trust, not only for Tether but for the entire stablecoin industry,” the announcement stated.

Tether Updates Crypto Community of Progress

Consistently, the firm released attestations every three months to review the makeup of its reserve. So far, Tether eliminated its exposure to commercial paper gradually without any vulnerability to losses.

While clearing the air about the composition of the assets in its reserve in July, Tether declared that its total commercial paper exposure was around 3.7 billion, a far cry from the  30 billion it was previously. The stablecoin issuer talked about its plan to reduce it to 200 million in August and finally cut it down to zero by November. 

Later at the beginning of October, Tether successfully reduced its commercial paper exposure to less than 50 million. Obviously, the firm has taken extra care to ensure the stablecoin USDT is portrayed as a legitimate innovation amongst the crypto community. 

Finally, the goal to bring Tether’s commercial paper exposure to zero has finally been reached. The consistent updates which were published on the state of its stablecoin reserve go to show Tether’s commitment. The Tether stablecoin USDT boasts as the largest stablecoin in the whole of the crypto ecosystem.

The coin holds a market capitalization of up to $68.4 billion and would need to keep assuring the crypto community of its integrity, especially after the collapse of the TerraUSD which left the ecosystem $2 trillion short.