Home
NFT

Tether cuts USDT by 20% on commercial paper backing since April – The Defiant

0 Comment

The world’s largest US dollar stablecoin, Tether (USDT), today announced its first certification report in six months. The report states that Tether’s holdings in its commercial paper – short-term commercial debt – decreased by 17% from December 2021 to March 2022, from $ 24.2B to .9 19.9B.

Tether said it has further reduced its holdings in commercial paper by 20% since the beginning of April. This means that about B 16B of commercial paper supports $ 74 billion in stablecoins. Certification from accountancy firm MHA Cayman, USDT backed by at least $ 83 billion in assets.

The U.S. Treasury bill – a loan from the U.S. government – and a “significant average maturity reduction” have replaced much of the “tether” commercial paper. [a] Focus on more short-term assets. ”The company has raised the average quality of its commercial paper from A-2 to A-1.

“This latest certification further highlights that the tether is fully supported and its stock structure is strong, conservative and fluid. As promised, it demonstrates the company’s commitment to reducing its commercial paper investment, ”Tito’s CTO Paolo Ardoino said in a statement.

Unlike conventional money market funds, Teether has never disclosed who owns the commercial paper. This means that investors do not know whether the backing is well-diversified and what kind of financial crash could delete Stablecoin. Ardoino told the Financial Times that expressing support for Tithar would reveal his “secret sauce”.

The second most popular is Stablecoin, USDC, backed entirely by “cash and short-term U.S. government obligations”. Until its fall, UST was backed by the belief that a connected network token, the LUNA, would help the token. This month, when Terrier debited the US dollar stablecoin, UST, so did Tether, which fell to 9 0.95 before restoring parity with the US dollar.



https://ift.tt/x9657A3

Baca juga

Post a Comment

Post a Comment