Tether further lowers commercial paper holdings to less than $50M

Major stablecoin issuer Tether has further lowered the amount of commercial paper it has to less than $50 million. It now has more than half of its backing in the United States Treasury Bills. 

The development signals an increase from 43.5% as of June 30. The company’s plans, which were made public earlier in the year, call for a gradual but steady decrease in the amount of commercial debt holdings Tether currently possesses. 

Paolo Ardoino, the Chief Technical Officer of Tether, made the announcement that the company’s overall US Treasury portfolio is currently at 58.1% as of September 2022 in an update that was shared on Twitter on Monday, October 3, 2022. 

#tether portfolio update. Tether as of 30 September 2022 holds ~58.1% of its assets in US t-bills. Up from 43.5% on June 30 2022.
CP exposure is < 50M now.@Tether_to

— Paolo Ardoino 🍐 (@paoloardoino) October 3, 2022

In addition, Ardoino claimed that the company reduced its holdings of commercial debt to an amount that is less than $50 million.

Allegations on Tether

The most recent turn of events occurs not long after a court in the United States District Court for the Southern District of New York in September ordered Tether to supply financial information to obtain USDT backing. The ruling from the court comes as a response to a lawsuit that was filed in 2019, which described Tether as “part-fraud, part-pump-and-dump, and part-money laundering,” and alleged that crypto exchange Bitfinex influenced the market by issuing USDT in order to raise the value of bitcoin unfairly.

The company responded by stating that the court order in question was “a routine discovery order” and that it does not “in any way substantiate plaintiffs’ meritless claims.” The issuer of the stablecoin noted that the company already has plans to release the documents relating to its USDT reserves.

It is important to note that Tether announced in August that it will begin providing attestation reports every month, unlike the previous frequency of quarterly attestations, and it also began working with the accounting firm BDO Italia.