Stablecoin giant Tether has announced that it has eliminated commercial paper from its reserves, replacing these investments with U.S. Treasury Bills (T-Bills).
The move is part of Tether’s ongoing efforts to increase transparency, with investor protection at the core of the management of Tethers’ reserves.
“Reducing commercial papers to zero demonstrates Tether’s 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,” a statement from the company said.
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 Company 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.
“Today, the goal to bring the figure down to zero has been fulfilled,” the statement said.
“We are really excited about this update in blockchain because it keeps giving stablecoins users top-level peace of mind and trust in the space,” the company further stated.
With this new update, Tether as a stablecoin can now be used to preserve currency against inflation, preserve cryptocurrency assets and to make cross-border transactions in minutes without having to worry about the troubles of opening a dollar account among other things.
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