In line with promises made earlier this year, major stablecoin issuer Tether (USDT) has begun to cut its holdings in commercial paper.
In the second quarter of 2022, Tether reduced its holdings of commercial paper from $ 20 billion to $ 8.5 billion, a decrease of more than 58 percent, according to a new report from the company.
The relationship was completed with a member company of BDO, one of the largest public accounting networks in the world.
Commercial papers are unsecured bills with fixed maturity dates issued primarily by large institutions to raise funds for their short-term debt obligations.
Tether says it plans to reduce its holdings of commercial paper to around $ 200 million by the end of August and to zero by the end of the year. Previously, the stablecoin issuer said it wanted to reduce its holdings in commercial paper to zero by October / early November.
Tether also claims to have increased its holdings of cash and bank deposits by 32% in the second quarter.
The company’s CTO, Paolo Ardoino, says Tether’s usefulness is backed up by the transparency of its reserves.
“Our commitment to transparency and community is a long-standing pillar in the ethics behind the company and aligns with our responsibility as a market leader. We have demonstrated this commitment once again by aligning with BDO, one of the leading accounting firms in the world ”.
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