Tether pledges to zero out exposure to commercial paper in its reserves

The collateral portfolio backing the Tether (USDT) stablecoin contains no securities issued by Chinese companies. Its issuer pledged to bring the share of commercial paper to zero by November from the current $3.7 billion.

#Tether’s portfolio holds no Chinese commercial paper and as of today, its total commercial paper exposure has been reduced to a mere ~3.7B (from 30B in July 2021) with plans to further decrease to ~200M by the end of August 2022 and to zero by end of October/early November 2022. https://t.co/u91A2sq3bU

— Paolo Ardoino 🕳🥊 (@paoloardoino) July 27, 2022

The CTO of Tether Limited Paolo Ardoino recalled that a year ago the commercial papers in USDT reserves were valued at $30.8 billion. A month later, the position in them would be reduced to about $200 million.

The senior executive did not provide corroborating documents for the current composition of the stablecoin’s collateral.

The initiative is a commitment to the community to build a diversified portfolio with risk limits on individual issuers or assets, according to сайту компании.

The step is aimed at “fighting misinformation and preserving the reputation of the cryptocurrency ecosystem”.

Earlier in June, media reported on the “popularity” of short positions in USDT amid market turmoil and the Terra ecosystem collapse. о «популярности» коротких позиций по USDT на фоне негативных явлений на рынке и коллапса экосистемы Terra.

Тогда Ардоино заявил, что компания обработала конвертацию в фиат 7 млрд токенов (~10% от общих активов). 

18 июня сайт эмитента стейблкоина was subjected to a major DDoS attack. At that time the CTO of the issuer ruled out any impact of the incident on the ability to redeem USDT positions.

Ранее эмитент стейблкоина refuted слухи о доминировании в резервах китайских коммерческих бумаг.

Подробнее о том, как устроен Tether, читайте в наших образовательных карточках.

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