USDT stablecoin issuer Tether has now revealed a reduction in commercial paper holdings in its latest attestation report released on February 21.
Audit company MHA Cayman, which prepared the Consolidated Reserves Report, explained that Tether’s total assets exceed the amount required to reclaim the digital tokens issued by the company. The report further shows that Tether has reduced its dependence on commercial paper and cash holdings by strengthening its money market funds and treasury bills reserves.
Strictly speaking, the stablecoin issuer has reduced its commercial paper holdings by 21%, from $30.5 billion in the period ending in September to $24.2 billion in December. Furthermore, it has also contracted its cash assets from $7.2 billion to $4.2 billion.
“The latest report also shows an increase in the group’s investments in money market funds and treasury bills as well as A-1+ commercial paper holdings over the previous quarter, which further fortifies the resilience of Tether’s stablecoins,” the company said in its blog post.
Tether CTO, Paolo Ardoino commented:
“The utility of Tether has grown beyond being just a tool for quickly moving in and out of trading positions, and so, it is mission critical for us to scale alongside the peer-to-peer and payments markets. To serve these new retail and institutional customers, Tether will continue to be the leader amongst its peers when it comes to transparency and reliability.”
In February 2021, Tether and its affiliated cryptocurrency exchange Bifinex settled a lawsuit with the New York Justice Authority (NYAG) over allegations of fraudulent loans worth $ 850 million. Thereafter, as part of its efforts to increase transparency, Tether agreed to publish a quarterly breakdown of its reserves.