Tether Increases US Treasury Portfolio, Cuts Commercial Paper Holdings

https://www.coindesk.com/business/2022/10/03/stablecoin-issuer-tether-increases-us-treasury-portfolio-cuts-commerical-paper-holdings-to-below-50m/

Stablecoin Issuer Tether Increases US Treasury Portfolio, Cuts Commercial Paper Holdings to Below $50M

Stablecoin issuer Tether has cut its commercial paper holding to less than $50 million, Tether Chief Technology Officer Paolo Ardoino said in a tweet.

As of Sept. 30, the company increased its holding of U.S. Treasury bonds to 58.1% of its total portfolio from 43.5% of its total portfolio as of June 30.

Commercial papers are short-term unsecured debt issued by companies, where the value of the papers is dependent on the issuing company. Commercial papers are less stable than other debt instruments, like U.S. government treasuries.

Tether had earlier said that it will bring its commercial paper holdings to zero by the end of the year on the back of growing concerns over the stability of its ecosystem and its stablecoin USDT.

In May, the company held $20.1 billion of commercial papers, which it reduced to $8.5 billion by June 30.

The USDT issuer had also appointed a new auditor BDO Italia to take over its regular attestation reports. Recently, the firm was ordered by a New York-court judge to produce financial records relating to the backing of USDT.