1 year ago
Stablecoin issuer Tether has eliminated commercialized papers from its USDT reserve, according to its latest reserve update.
Tether announced connected Oct. 13 that it has chopped its commercialized insubstantial to zero and volition put much successful U.S. Treasury Bills and short-term government-issued debt.
Tether said:
“Reducing commercialized papers to zero demonstrates Tether’s committedness to backing its tokens with the astir unafraid reserves successful the market.”
According to Tether, holding its reserve successful much secured assets volition assistance summation the company’s transparency and bring greater extortion for investors’ funds.
Tether added that it amended its transparency by sharing details of the USDT reserve successful its quarterly attestation reports.
Road to zero commercialized paper
Since 2017, Tether has been criticized for deficiency of transparency connected the quality of assets backing the USDT stablecoin. In May, rumors emerged that 85% of Tether’s reserves were held successful Chinese commercialized papers.
In defense, Tether said its reserve is comprised of little than 25% commercialized insubstantial but promised to slash it down to zero by year-end.
In July, Tether announced that it has chopped its commercialized insubstantial portfolio to a debased of $3.5 billion, down from the erstwhile precocious of $8.5 billion.
By the extremity of Sept. 30, Tether reported that its commercialized insubstantial holdings sat beneath $50 cardinal aft $3 cardinal of the holdings expired.
The station Tether reduces commercialized insubstantial reserves for USDT to zero appeared archetypal connected CryptoSlate.
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