Stablecoin issuer Tether has revealed that it now holds no trading papers after months of gradually reducing its holdings of trading debt to its reserve assets.
The development comes less than two weeks after the company announced it was reducing its exposure to commercial paper to less than $50 million.
- Commercial paper is a short-term, unsecured debt issued by companies. CP is generally considered more stable than US Treasuries.
- According to today’s announcement, the commercial paper has been replaced by US Treasury Bills (T-Bills).
- The company claimed Tether’s business debt holdings amounted to about $30 billion in July 2021 before heading to zero with no losses.
“Today, the goal of bringing the number down to zero has been achieved,” Tether said.
- The company said the move is part of its efforts to increase transparency and support its stablecoins with safer and more liquid reserves in the market.
The zero commercial paperwork shows Tether’s commitment to backing its tokens with the safest reserves on the market. The company added that this is a step towards greater transparency and trust not only for Tether but for the entire stablecoin industry.
- Tether did not disclose the percentage of T-bills in its portfolio in the latest update. However, on September 30, 2022, the company announced that its investment in treasury bills amounted to 58.1%.
Tether that was released after Stablecoin and now holds a zero commercial paper made its debut on CryptoPotato.