2022-05-19 09:24:06
Tether has made changes to the assets that secure the stabelcoin bind
During a recent Twitter Spaces event discussing stabelcoin and the recent volatility of cryptocurrencies, Tether CTO Paolo Ardoino said that the company has halved the amount of commercial paper securing their stabelcoin. It is worth repealing that Ardoino is also the technical director of the crypto exchange Bitfinex.
In the last six months, [Tether] has reduced the amount of commercial paper by 50%. Everything that we took out of commercial paper has been transferred to U.S. Treasury securities," he said.
We will have a new attestation in the next few weeks that will show that the amount of these commercial paper continues to decline.
Commercial paper is a type of security issued by large corporations to pay short-term debt obligations, such as inventory or payroll.
Other members of the crypto industry attended the Spaces event, including Samson Mou of Jan3 and Adam Back of Blockstream. Also in attendance was Michael Soutart, a U.S. Senate candidate from the state of Kansas.
Tether (USDT) is the industry's largest stabelcoin in terms of market capitalization and is backed by a variety of financial assets.
According to Tether's transparency report, USDT is backed by cryptocurrencies, loans, corporate bonds, precious metals, cash and cash equivalents.
Tether's latest official attestation shows that cash, cash equivalents, short-term deposits and commercial paper provide 83.74% of all Tether stackablecoins traded on the market.
Of that number, nearly 37% is commercial paper and certificates of deposit, with treasury bills accounting for about 52%. The 37% figure refers to December, so in light of Ardoino's comments about a 50% reduction in six months, we can only assume that the figure is now 18.5%, but this cannot be certain due to the lack of data.
Tether is notorious for the opacity of its operations and has repeatedly refused to be publicly audited by major accounting firms.
31.4K views06:24
N
