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CTO says exposure to bonded commercial paper is now less than $50 million

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stablecoin issuer Tether (USDT) It has reduced its commercial paper holdings almost entirely, with less than $50 million in commercial paper units as of September 30, 2022.

CTO Paolo Ardoino announced Tether in a tweet on October 3, also adding that Tether’s US Treasuries rose to 58.1% of its total portfolio, up 25.1% from the June 30 figure of 43.5%.

Commercial paper is short-term debt instruments issued by corporations, which are often used to finance various business operations, while treasury bonds are claimed to be more stable than commercial paper because they offer “zero risk of default” as investors are guaranteed to at least offset the purchase price.

in June, Tether said he aimed to reduce the commercial paper support for USDT to “zero,” and converted it into short-term US Treasuries – aimed at Increased stability of its ecosystem and stablecoin USDT.

The stablecoin issuer is also seeking to increase transparency and backing up its dollar reserves.

In July, it European accounting firm appointed BDO Italia As a new auditor to independently review its stablecoin reserves in an effort to improve transparency and more regularly disclose audit and validation reports.

Last month , Tether was ordered by the United States District Court in New York To submit documents proving USD1 support for the USDT stablecoin on September 19th.

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As for when to update Tether’s transparency report, Ardoino He said The deadline normally takes 45 days, but now he expects the new auditor to improve this process and reduce this timeline.

Related: Tether aims to reduce trade paper support for USDT to zero

Tether’s plan to completely reduce its commercial paper holdings by the end of 2022 is well underway, with the company reduce its reserves From 20 billion units as of the first quarter of 2022 to 8.4 billion units as of the second quarter of 2022.

USDT is currently the largest stablecoin, with a The market capitalization is $67.95 billion, 3rd highest digital asset according to Queen Gekko data.