On October 13, 2022, Tether Holdings Limited will , the stablecoin issuer reduced its commercial paper holdings to zero. The company has said it will achieve this goal for some time, and Tether said that reducing its commercial paper holdings to zero “demonstrates Tether’s commitment to backing its tokens with the safest reserves on the market. There are.”
Tether Ditches $30 Billion Worth of Commercial Paper, Company Turns to US T-Bills Instead
Largest Stablecoin by Market Capitalization, Tether A reserve of USDTdisclosed by the company behind I’m here. The announcement follows a statement made by Tether Chief Technology Officer Paolo Ardoino on his October 3rd.
At the time, Mr Ardoino explained that US Treasury bills accounted for more than 58% of his reserves in the company, adding that “[commercial paper] exposure is now 5,000. less than a million dollars,” he said. USDT, a stablecoin with a market valuation of approximately $68.53 billion, said the decision to eliminate its commercial paper holdings was positive for the crypto industry as a whole. thinking about.
“Reducing commercial paper to zero demonstrates his Tether’s commitment to backing the token with the safest reserve on the market,” the company said Thursday. “This is a step towards greater transparency and trust, not just for Tether, but for the stablecoin industry as a whole.”
Move follows Terra Stablecoin demise Five months ago, both Tether and Usd Coin have since lost billions of dollars
Tether move follows problems with Terra blockchain and UST last May Related to depegging events. Additionally, following the collapse of the UST, a handful of stablecoins were decoupled from the $1 parity. The news also follows the market cap of the USDC stablecoin, which has shrunk over the past few months to a valuation of around $45.82 billion today.
USDTmarket capitalization also dropped following Terra’s collapse. As Bitcoin.com News reported that the number of USDT in circulation dropped in mid-June. Over 12 billion coins in 2 months. USDT and USDC stablecoins are still the top two stablecoin assets by market capitalization, despite the decline in circulation of USDT and the third (USDT) and It is the 4th (USDC) and largest crypto asset. evaluation.
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