Tether cuts the volume of commercial paper to $50 million
As of September 30, the company reduced the volume of its commercial paper to less than $50 million
03.10.2022 - 14:45
245
2 min
0
What’s new? Tether Chief Technology Officer Paolo Ardoino said that US Treasury bills make up 58,1% of Tether's (USDT) stablecoin reserves. The company has repeatedly said throughout 2022 that it plans to improve the quality of its reserves by reducing the volume of commercial paper. As of September 30, it reduced its holdings to less than $50 million. Ardoino said this on Twitter.
#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
What else does Ardoino say? He noted that the collapse of the Terra ecosystem and its algorithmic stablecoin UST in May could hasten the emergence of a regulatory framework for stablecoins. At the time, the USDT issuer's commercial paper holdings stood at $19,9 billion. That amount was down more than 58% by August 19, when Tether's commercial paper holdings totaled $8,5 billion. From June 30 to September 30, Tether's treasury bill volume was up more than 14%.
USDT is the largest stablecoin in the cryptocurrency market, and the third-largest cryptocurrency overall with a capitalization of $67,87 billion, according to aggregator CoinGecko.
On September 29, cryptocurrency exchange Binance began automatically converting USDC, USDP and TUSD stablecoin deposits into its own stablecoin Binance USD (BUSD) at a ratio of 1:1. The company said the move would improve liquidity and capital efficiency for the platform's customers.
The head of Binance later called the stablecoin USDT a “black box.” Zhao stressed that he was not confident in the reliability of USDT's peg to the dollar. In addition, Binance has no channel to convert USDT to dollars.
Useful material?
Market
To advance crypto-friendly regulation, Trump’s party needs to win a majority in the Senate
Oct 18, 2024
Incidents
The regulator believes that the court erred in not recognizing retail sales of XRP as securities transactions
Oct 18, 2024
Market
The leader was the Solana network, with 100 million active addresses per month
Oct 17, 2024
Crypto regulations
Amendments to the regulation of financial institutions have been published for public discussion until October 30
Oct 16, 2024
Market
Over the past four years, the company’s shares have grown by 1540%, while the index has gained only 111%
Oct 16, 2024
Incidents
Over the last 24 hours, the asset has updated its all-time high at $2,34
Oct 15, 2024