Top Stablecoin Tether (USDT) Slashes Commercial Paper Holdings, Increases Cash and Bank Deposit Reserves

Following a promise made earlier this year, top stablecoin issuer Tether (USDT) has begun reducing its commercial paper holdings.

In the second quarter of 2022, Tether reduced its commercial paper holdings from $20 billion to $8.5 billion, a decline of more than 58%, according to new data. report from the company.

This report is produced by member firms of BDO, one of the world’s largest public accounting networks.

Commercial paper is an unsecured promissory note with a fixed maturity issued primarily by large financial institutions to finance short-term debt.

Tether says it plans to reduce its commercial paper holdings to about $200 million by the end of August and to zero by the end of the year.Previously, the stablecoin issuer was Said The company had planned to eliminate its commercial paper holdings by October/early November.

Tether also said it increased its cash and bank deposit holdings by 32% in the second quarter.

The company’s CTO, Paolo Ardoino, said Tether’s usefulness is underpinned by the transparency of its reserves.

Our commitment to transparency and community are long-standing pillars of the underlying ethos of our company and are consistent with our responsibilities as market leaders. We are one of the top accounting firms in the world. We have once again demonstrated that commitment by working with BDO.

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