Tether reduced its commercial paper holdings to $19.9 billion from $24.2 billion.
Stablecoin issuer Tether said it reduced its commercial paper holdings in the first quarter of this year to improve the quality of its reserves.today that it had reduced its commercial paper to $19.9 billion from $24.2 billion the previous quarter, a 17% decrease. It also added U.S. Treasury bills, increasing them to $39.2 billion from $34.5 billion.
The company added that it planned to cut its commercial paper by another 20%, which would be reflected in its second-quarter report.said last October said that much of Tether’s commercial paper had been issued by big Chinese companies, causing some analysts to question the quality of the reserves. Tether has refrained from disclosing the names of those firms.
Tether is the provider of USD Tether , the biggest stablecoin in the crypto market. It maintains the value of its centralized stablecoin by using a basket of assets, including corporate debt, US Treasury bills and some cash reserves.