Tether Reduces Commercial Paper Holdings by Almost 60% as it Addresses Quality Issues
- The market capitalization of the USDT issuer dropped from $82.2 billion to $66.1 billion in just two months.
- Tether intends to reduce the amount to zero as it diversifies its assets into U.S. Treasury bonds, according to an update on its website.
- In May, the business had $20.1 billion in commercial paper.
Tether has been facing quality control issues for some time now. In order to address these concerns, the company has reduced its commercial paper holdings by almost 60%. This move will help Tether to focus on improving the quality of its product.
The reduction in commercial paper holdings has caused Tether’s market capitalization to fall from $82.2 billion to $66.1 billion over the past two months. However, this is a necessary step in order for the company to improve the quality of its product. tether is committed to providing its users with a high-quality product and this reduction in commercial paper holdings is a key part of that commitment.
Tether’s focus on quality control is a positive step for the company and its users. By reducing its commercial paper holdings, Tether can put more resources into ensuring that its product meets the highest standards. This commitment to quality will ultimately benefit all who use Tether’s products and services.
Tether released an independent accountant’s MHA Cayman‘s attestation of holdings in May. According to the research, Tether had Treasury bonds worth $39.2 billion. Additionally, it held $3.1 billion in secured loans, $6.7 billion in money market funds, and $4.1 billion in bank deposits. Since May, a growing number of customer redemptions following the demise of the algorithmic stablecoin TerraUSD have caused Tether’s USDT stablecoin’s market cap to fall from $82.2 billion to $66.1 billion (USDT).
The Wall Street Journal reports that hedge firms are taking hundreds of millions of dollars worth of short bets on Tether. Paolo Ardoino, the chief technology officer at Tether, quickly allayed any worries, calling the claim that hedge funds were shorting USDT “FUD” (fear, uncertainty, and doubt).