late september, Rope Make headlines at the judge Command The company would disclose documents that are likely to be critical to any assessment of USDT support.
The court found that evidence was necessary to prove that the tether had a treasury that fully supports its stablecoin. This time around, Tether has issued an important statement, unmoved by the courts, about the type of asset that will no longer be used to back its stablecoin.
Rope most dangerous That all his commercial papers were liquidated. In light of this significant achievement, the stablecoin announced on its blog that it will start investing exclusively in US Treasuries.
Commercial paper issued by companies is a form of unsecured short-term debt. At the end of May, the company’s commercial paper was worth $20.1 billion.
This fell to $8.5 billion at the end of June. According to this announcement, the company is on the right track to not having distinct commercial certificates by the end of the year, which it was before advertiser.
With no commercial paper to worry about, USDT is much safer and volatility risks are greatly mitigated.
Responses to the news were shared on Tether’s Twitter page. This change, in the view of some, makes USDT more secure by reducing its vulnerability. Some have argued that USDT’s lack of dollar reserves makes it more volatile than competing stablecoins.
USDT still dominates
With a market capitalization of over $65 billion, USDT was the largest stablecoin, according to data From Coinmarketcap.
Except Bitcoin And the EthereumIt ranked third among all cryptocurrencies in terms of market capitalization and dominance. also noticeable Its trading volume reached over $65 billion, an increase of more than 80% in the last 24 hours.
Over 18,000 views were seen in the Network Growth Index. Although it didn’t hit 26,000 in May, it’s still a sign of new user growth.
according to Reports In September, members of Congress in the United States considered a bill that would place a two-year moratorium on the creation of new stable algorithmic currencies.
It is alleged that the creation or distribution of “internally secured stablecoins” is illegal under the proposed legislation.
What’s next for USDT and stablecoins?
There is widespread speculation that if the US launches its Central Bank Digital Currency (CBDC), it will threaten market supremacy over dollar-backed stablecoins like USDT.
Although the development of digital central bank coins is inevitable, they will have different functions than stablecoins. We can instead observe a symbiotic relationship between the two uses.