The share of US Treasury bills in the collateral for the stablecoin USDT rose to 58.1% from 43.5% at the end of June. This was reported by the CTO of its issuer — Tether Holdings Limited — Paolo Ardoino.
#tether portfolio update. Tether as of 30 September 2022 holds ~58.1% of its assets in US t-bills. Up from 43.5% on June 30 2022.
CP exposure is < 50M now.@Tether_to— Paolo Ardoino 🕳🥊 (@paoloardoino) October 3, 2022
The position in commercial paper fell below $50 million. In August 2021 it stood at $30.8 billion or 49% of total reserves .
Plans to change the composition of USDT collateral in favor of US Treasury bills were first disclosed in May 2022.
In July Ardoino said he was committed to pursuing this line after the world’s fifth-largest auditor confirmed the collateral for Tether.
USDT operates on Ethereum, NEAR, Polkadot, Algorand, Avalanche, EOS, Kusama, Liquid Network, Polygon, Tezos, Tron, Solana, Statemine and the Simple Ledger Protocol.
Earlier in February 2021, the issuer of the stablecoin and its related cryptocurrency exchange Bitfinex settled a dispute with the New York Attorney General’s Office over the loss of $850 million.
The head of the department Letitia James called Tether’s claim that its digital asset was fully backed by US dollars a lie. But the company viewed the agreement with authorities as confirmation of its activities.
In October that year Bloomberg suggested the presence of bonds of Chinese firms in USDT reserves.
In September 2022, a New York court ordered Tether Limited to provide financial documents to assess the stablecoin’s reserves in a proceeding concerning potential market manipulation.
Earlier, the Wall Street Journal reporters described a hypothetical scenario of ‘technical insolvency’ of USDT if reserve assets fell by 0.3%.
Prior to this, the issuer called the the ‘categorically erroneous’ idea of shorting Tether by hedge funds.
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