Stablecoin Tether, the operator of the world’s most widely used cryptocurrency, said it has reduced the amount of commercial paper in reserves backed by its $74 billion stablecoin, while cutting exposure to riskier assets. The US government has increased its holdings of debt.
Tether is the issuer of USDT, a stablecoin that relies on US dollar reserves and dollar-equivalent assets to maintain a one-to-one peg. cryptocurrency, The quality of those reserves has previously been called into question for its over-reliance on assets with limited liquidity, with Tether being criticized for its lack of transparency in the matter.
In a statement on Thursday, Tether noted a 17% decrease in its commercial paper holdings to $20.1 billion compared to the previous quarter, and said it has completed a further 20% reduction on that amount since April 1. , which will be included in this. Upcoming report for the second quarter.
The token, operated by a British Virgin Islands company, is designed to have a value of $1. tie rope promises that it has enough reserves to allow all holders of Tether worth over $70 billion to exchange its tokens for dollars.
In contrast, Tether said it had increased its investments in money market funds and US Treasury bills, increasing more than 13% to total $39.2 billion. The average rating of its commercial paper and certificates of deposit has increased from A-2 to A-1, while secured loans have decreased by $1 billion.
Tether’s total market circulation has exceeded $8.9 billion since the first fall of Terra on May 7.