Stablecoin issuer Tether has reduced its commercial paper holdings to zero, replacing those holdings with U.S. Treasury bills, the company announced in a blog post Thursday.
“Reducing commercial papers to zero demonstrates Tether’s commitment to backing its tokens with the most secure reserves in the market,” Tether wrote.
As of Sept. 30, the company's U.S. Treasury holdings stood at 58.1% of its total portfolio, up from 43.5% at the end of June, Tether Chief Technology Officer Paolo Ardoino tweeted earlier this month. In its latest post, Tether didn't specify what percentage of its current portfolio is held in U.S. Treasurys.
Commercial paper is short-term unsecured debt issued by companies, where the value of the paper depends on the issuing company. Commercial paper is less stable than other debt instruments, such as U.S. Treasury bonds.
Tether had said that it would bring its commercial paper holdings to zero by the end of the year because of growing concerns over the stability of the Tether ecosystem and its stablecoin, USDT.
Earlier this month, Tether said it had cut its commercial paper holdings to less than $50 million.
UPDATE (Oct. 13, 17:14 UTC): Added information from Tether CTO's tweet in third paragraph.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in Bullish Group as part of their compensation.