Tether reduces commercial paper exposure to below $50M, Treasury bills rise to 58.1% of reserve News ▸ US ▸ Bitfinex ▸ Tether ▸ Stablecoins
Tether reduces commercial paper exposure to below $50M, Treasury bills rise to 58.1% of reserve
As of Sept. 30, Tether holds 58.1% of its reserve assets in U.S. Treasury bills, while aggressively reducing its commercial paper exposure to below $50 million.
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Updated: Oct. 3, 2022 at 11:26 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Insider information on Tether’s reserve revealed that as of Sept. 30, the stablecoin issuer had increased its U.S. Treasury bills to 58.1% of its reserves while reducing its commercial paper exposure to below $50 million.
According to the last official report on June 30, about 43.5% of Tether’s assets — roughly $28.8 billion — were held in U.S. Treasury bills, while less than 25% — around $8.4 billion — represented its exposure to commercial papers.
The stablecoin issuer had promised to reduce its commercial paper holdings down to zero while having more of its reserve assets in U.S. Treasury bills.
A recent portfolio update shared by Tether CTO Paolo Ardoino suggested that the stablecoin issuer is keeping true to its promise.
#tether portfolio update. Tether as of 30 September 2022 holds ~58.1% of its assets in US t-bills. Up from 43.5% on June 30 2022.
CP exposure is < 50M now.@Tether_to— Paolo Ardoino 🕳🥊 (@paoloardoino) October 3, 2022
A fact check against Tether’s public transparency page records its current U.S. Treasury bills at 54.57%, while its commercial paper exposure is approximately 16%.
According to Ardonia, it will usually take about 45 days for the official report to be reflected; however, the auditing team is working to reduce the timeline.
CryptoSlate reached out to Tether and confirmed that the update will be available in its next quarterly report. A Tether spokesperson said:
“Portfolio updates to look out for include a reduction in commercial papers, now making up less than $50M of its reserves and the holding of 58.1% of its assets in U.S. Treasury Bills.”
Tether added that it was moving away from commercial paper into Treasury bills as it needs a more conservative portfolio to remain the largest stablecoin by trading volume.
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Christian Nwobodo
Christian is a crypto-curious nerd who loves to investigate how protocols work under the hood. Christian is interested in DeFi protocol research, token economics, and on-chain analytics.
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Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Bitfinex
Bitfinex is a digital asset trading platform offering state-of-the-art services for digital currency traders and global liquidity providers.
Paolo Ardoino joined Bitfinex at the beginning of 2015 and now serves as Chief Technology Officer.