By Modupe Gbadeyanka
One of the leading players in the digital currency world, Tether, has replaced commercial paper in its USDT reserves with US treasury bills.
In a statement on Friday, the stablecoin said this is part of ongoing efforts to increase transparency, with investor protection at the core of the management of its reserves.
It said the elimination of commercial paper from its reserves and its replacement with T-Bills demonstrates its commitment to backing its tokens with the most secure reserves in the market.
This is a step towards even greater transparency and trust, not only for Tether but for the entire stablecoin industry, the company said in the statement made available to Business Post.
Tether has led the industry in transparency, releasing attestations every three months and constantly reviewing the makeup of its reserves.
In the last quarter, Tether reduced its exposure to commercial paper holdings constantly and without any losses.
On July 1, the organisation shared an update on its progress in further reducing its commercial paper portfolio to a low of $3.5 billion, which was on track with Tether’s commitment to the community.
On September 30, the company announced it was below $50 million in commercial paper holdings, and as of today, it has completely reduced its exposure to the fixed-income investment to zero.
