New Tether Data Shows 21% Decrease In Commercial Paper

The new Tether data shows there’s a 21% decrease in commercial paper holdings over the past quarter as we can see more today in our latest Tether news.

Tether Holdings Limited released its quarterly assurance opinion that shows a 21% decrease in commercial paper holdings in the last quarter. In a blog post on the Tether website, the company says the new figures show that the group’s reserves held for the tokens issued exceed the amount required to redeem the issued digital tokens.

The company also added that an increase in the group’s investments in money market funds and treasury bills only fortifies the resilience of the Tether stablecoins. The CTO Paolo Ardoino added:

“We are committed to serving the fast-growing cryptocurrency market as the strongest stable asset in the Web3 economy.”

Tether’s Latest Assurance Opinion Reveals That Reserves Held Exceeds Liabilities ⬇️https://t.co/QXQEQ0go0F

— Tether (@Tether_to) February 22, 2022

He also said that TEther has grown beyond just being a tool to move in and out of trading positions and added that its mission is quite critical to scale Tether alongside the peer-to-peer payment markets. Tether also revealed a breakdown of the reserves for the first time since 2014. About 76% of Tether’s reserves were held in cash or cash equivalents while the remaining quarter was held in different secured loans, bonds, and other investments which included Bitcoin. Under cash and cash equivalent, the commercial papers held by the majority were with a share of 65%.

The new Tether data shows that Tether was initially backed 100% by cash and the figures now show that less than 3% of Tether reserves were actually held in cash. Stuart Hoegner who is a general counsel at Tether said that it was misleading to focus on cash exclusively. Back in August 2021, another Tether-released assurance report conducted by Cayman Islands-based auditor Moore cayman also showed that tether has a backing of $62.7 billion.

Out of the total backing, $30.8 billion was made up of commercial paper and certificates of deposit but just 10% of Tether’s backing was said to have come from cash or bank deposits. In October 2021, ether was hit with a $41 million fine from the US CFTC for reportedly lying about its dollar reserve while Bitfinex as the sister company of Tether was also fined.