{"id":29972,"date":"2022-06-15T06:32:23","date_gmt":"2022-06-15T10:32:23","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=29972"},"modified":"2022-06-15T06:32:34","modified_gmt":"2022-06-15T10:32:34","slug":"tether-plans-to-reduce-commercial-paper-backing-of-usdt-to-zero","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/tether-plans-to-reduce-commercial-paper-backing-of-usdt-to-zero\/","title":{"rendered":"Tether Plans To Reduce Commercial Paper Backing Of USDT To Zero"},"content":{"rendered":"\n
By the end of June 2022, Tether<\/a> plans to lower USDT's commercial paper backing to $8.4 billion, and then remove it entirely.<\/h5>\n\n\n\n
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Tether, a popular stablecoin<\/a> firm, hopes to someday eliminate commercial paper backing for its US dollar-based stablecoin Tether (USDT).<\/p>\n\n\n\n

Tether issued\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> an official statement on Wednesday denying claims that its commercial paper portfolio is 85% backed by Chinese or Asian commercial papers and is trading at a 30% discount.<\/p>\n\n\n\n

The stablecoin company declared such charges “absolutely incorrect,” stating that “United States Treasuries” currently account for more than 47 percent of total USDT reserves. Tether claimed<\/use><\/svg><\/span><\/a> in its most recent assurance opinion, issued in May, that commercial paper accounts for less than 25% of USDT's backing, totaling roughly $21 billion as of March 31.<\/p>\n\n\n\n
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USDT\u2019s backing asset breakdown. Source: Tether\u2019s assurance opinion released in May 2022<\/em><\/figcaption><\/figure>\n<\/figure>\n\n\n\n

The stabelcoin's current portfolio of commercial paper has been reduced to $11 billion, according to the most recent announcement. The firm plans to lower it further to $8.4 billion by the end of June 2022, eventually seeking to clear off its commercial paper backing, according to the statement:<\/p>\n\n\n\n

“This will gradually decrease to zero without any incurrences of losses. All commercial papers are expiring and will be rolled into U.S. Treasuries with a short maturity.\u201d<\/p><\/blockquote><\/figure>\n\n\n\n

Tether also highlighted the current Celsius lending platform incident, adding that the Celsius stake had been liquidated without no losses to the stable coin. “Aside from a tiny investment made using Tether equity in the company, Tether<\/use><\/svg><\/span><\/a> has currently minimal exposure to Celsius,” the firm stated.<\/p>\n\n\n\n

The stablecoin claims that it had loan exposure to the cryptocurrency venture capital firm Three Arrows Capital are “categorically untrue.”<\/p>\n","protected":false},"excerpt":{"rendered":"

By the end of June 2022, Tether plans to lower USDT’s commercial paper backing to $8.4 billion, and then remove it entirely. Tether, a popular stablecoin firm, hopes to someday eliminate commercial paper backing for its US dollar-based stablecoin Tether (USDT). Tether issued an official statement on Wednesday denying claims that its commercial paper portfolio […]<\/p>\n","protected":false},"author":33,"featured_media":29978,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[81],"tags":[],"class_list":["post-29972","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-altcoin-news"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/IMG_08102021_082703_900_x_530_pixel-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=29972"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29972\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/29978"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=29972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=29972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=29972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}