According to the latest reserve update, stablecoin issuer Tether has removed commercial paper from its USDT reserve.
tether announced On October 13, the company announced it would reduce its commercial paper to zero and increase its investment in US Treasury bills and short-term government bonds.
“Reducing commercial paper to zero demonstrates Tether’s commitment to backing its tokens with the safest reserves on the market.”
According to Tether, holding reserves in safer assets will help increase the company’s transparency and better protect investor funds.
Tether added that it will increase transparency by sharing details of its USDT reserves in its quarterly certification reports.
Road to commercial paper zero
Since 2017, Tether has been criticized for its lack of transparency regarding the nature of the assets backing the USDT stablecoin. In May, rumors circulated that 85% of his Tether reserves were held in his papers in Chinese commercials.
In its defense, Tether said it consisted of less than 25% of its reserves in commercial paper, but promised to bring it down to zero by the end of the year.
In July, Tether announced it had cut its commercial paper portfolio from a record $8.5 billion to $3.5 billion.
By the end of September 30, Tether reported that its commercial paper holdings fell below $50 million after its $3 billion holdings expired.