The issuer of the USDT stablecoin — Tether Limited — has completely abandoned commercial paper in its reserves, replacing them with US Treasury bills.
BREAKING: Tether is proud to announce that we have completely eliminated commercial paper from our reserves. This is evidence of our commitment to back our tokens with the most secure, liquid reserves in the market. (1/3)https://t.co/zBa9jRe7so
— Tether (@Tether_to) October 13, 2022
The company said the move reflects a commitment to greater transparency and to increasing trust not only in Tether but in the stablecoin sector more generally.
The company noted that it publishes quarterly reserve composition reports for USDT.
As of October 3, the position in commercial papers fell below $50 million. In August 2021 it stood at $30.8 billion or 49% of total reserves.
Plans to shift USDT collateral away from this type of financial instrument in favour of US Treasury bills were first announced in May 2022.
In July, Ardoino said he remained committed to pursuing this line after the world’s fifth-largest auditor confirmed the backing for Tether.
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