Tether reduces its commercial paper holdings by 17% in the first quarter of 2022.
“This recent attestation further demonstrates that Tether is completely supported and that its reserve composition is robust, conservative, and liquid,” stated Paolo Ardoino. Tether (USDT) revealed that it reduced its reserves allocation to commercial paper assets and boosted its allocation to US Treasury bills in the first quarter of 2022. Tether said its reserves were “completely supported” in a blog post on Thursday, ostensibly to satisfy many users’ concerns over USDT momentarily depegging from the dollar on May 12. According to the stablecoin issuer, its commercial paper holdings declined 17 percent in Q1 2022, from around $24 billion to $20 billion, with a further 20% reduction to be recorded in the firm’s next quarterly report. Tether raised its investments in money market funds and US Treasury bills by 13% in the same quarter, from around $34.5 billion to $39 billion. “Despite many black swan events and very unpredictable market circumstances, Tether has never once failed to honor a redemption request from any of its verified consumers,” stated Tether’s chief technical officer Paolo Ardoino. “This newest attestation demonstrates that Tether is completely supported and that its reserve composition is robust, conservative, and liquid.”
Tether is forced to show its reserves in each area as a part of an $18.5 million agreement with the Office of the New York Attorney General in February 2021, wherein the government claimed the enterprise misrepresented the quantity to which its USDT stablecoins had been sponsored with the aid of using fiat collateral. In February, the enterprise introduced a 20% discount in its reserves allocation to industrial paper in Q4 2021, from about $30 billion to $24 billion. USDT’s marketplace fee at the time of publishing changed into moreover $74 billion, exceeding Tether’s claimed reserve belongings of extra than $82 billion. During the preceding weeks of vast volatility withinside the crypto marketplace, Tether repeated that it will “appreciate all redemptions from demonstrated clients” for USDT, ostensibly to illustrate that the forex changed into as stable as its namesake.
Read more: Tether introduces a cryptocurrency and blockchain teaching program in Switzerland.