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Tether reserves have been a source of controversy for some time. In June of this year, Tether was accused of supporting 85% of its commercial paper portfolio with Chinese or Asian commercial paper. In addition, the paper was reportedly traded at a 30% discount.But Tether officially denied these claims Blog post In June.
They said,
More than 47% of USD’s total reserve is currently US Treasuries, and its commercial paper accounts for less than 25% of USD’s backing.
Anyway, tether now has publication Reduced commercial paper holdings from 30 billion in July 2021 to just 3.7 billion. The company also reiterated that it does not own Chinese commercial paper.
again, Largest stablecoin issuer Plans to further reduce its holdings of commercial paper to 200 million by the end of August 2022. Also, by late October or early November, we will run out of commercial paper.
Nevertheless, the company has assured investors that the company will continue to have a diverse portfolio. It also mentions limiting exposure to individual issuers or assets.
In a June blog, the company revealed that it had reduced its holdings of commercial paper from 20 billion at the end of the first quarter of 2022 to 11 billion. They planned to reduce this number to 8.4 billion by June. From that point of view, tethers seem to outperform themselves.
In June, CTO Paolo Ardoino said all expired commercial papers were put together in a US Treasury bill. He said the company would continue to do so until its exposure to commercial paper was zero.
Tether reserves have always been a source of controversy. Moreover, unlike the Center’s USDC, tethers are not subject to regular audits. In addition, the company is less transparent about investments and reserves.Therefore, many people USDC will soon beat USDT As the top stablecoin on the market.
