Stablecoin Issuer Tether Now Holds Zero Commercial Paper

Tether has fully replaced its commercial paper holdings with U.S. Treasury bills. Stablecoin issuer Tether has revealed that it now holds zero commercial paper after months of gradually reducing its commercial debt holdings for its reserve assets. The development comes less than two weeks after the company announced that it had reduced its commercial paper exposure to less than $50 million. 

The company said the move is part of its effort to increase transparency and back its stablecoins with more secure and liquid reserves in the market. 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,” the firm added. Tether did not specify the percentage of T-bills in its portfolio in the latest update.