Tether continues to sharply reduce commercial paper since March

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The stablecoin firm reported on Friday that Tether was reducing its commercial paper holdings as planned. It has reached a target of $8.4 billion in commercial paper and will continue to reduce its holdings in the near future, according to its intentions, which were first disclosed last month.

On July 31, the $5 billion in commercial paper held by Tether will mature, and the company’s portfolio is valued at $3.5 billion. As a result, treasury reserves will account for a larger percentage of corporate reserves, the report highlights.

Tether’s stablecoin USDT was backed by about $20.1 billion in commercial paper as of March 31. The company’s quarterly assurance opinion said that the proportion of commercial paper in its reserves is declining and that its reserves are fully supported.

Amid widespread market volatility, stablecoins briefly decoupled in May. On June 15, two days after cryptocurrency lending platform Celsius announced it was halting withdrawals, Tether issued a statement refuting rumors that 85% of the portfolio was heavily discounted by Asian and Chinese commercial paper. Tether said at the time that it aimed to reduce its commercial paper portfolio to zero. A few days later, USDT’s market cap fell to an eight-month low below $70 billion.

1/
I’ve been open to some hedge fund attempts to trigger further market panic after the TERRA/LUNA crash.
From the beginning, it really seemed like a coordinated attack, a new wave of FUD, troll armies, clowns, etc. https://t.co/hhcsgHV1Ow

— Paul Ardoino (@paoloardoino) June 27, 2022

However, these are not all stability issues for Tether. Tether CTO Paolo Ardoino said on Twitter on Monday that stablecoins are under “attack” by hedge funds. He went on to say that the same hedge funds “believe and help with all the FUD that truth-seekers have spread over the past few months. [and] year. “

Source of information: Compiled from COINTELEGRAPH by 0x information.The copyright belongs to the author Derek Andersen, and may not be reproduced without permission

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