- The company intends to completely liquidate all of its commercial paper assets.
- Tether has been preparing to submit financial records to the New York Court.
Tether (USDT), the biggest stablecoin in the crypto market, has been in the spotlight for a number of reasons recently. The company’s previous auditor was accused of “improper professional conduct,” while the stablecoin issuer was ordered to provide evidence in an ongoing lawsuit. Amidst this turmoil, the network disclosed that it had reduced its position of commercial paper to below $50 million.
Tether’s chief technology officer, Paolo Ardoino, recently tweeted that the network increased its holdings of U.S. Treasuries to 58.1% on September 30. This is a significant increase from 43.5% as of June 30th, 2022.
Aims for Zero by Year End
Commercial papers are a kind of short-term, unsecured financial instrument issued by businesses. Commercial papers are seen as less secure than U.S. treasuries. The corporation had a commercial paper value of $20.1 billion in May. In the month of June alone, this dropped to a meagre $8.5 billion. The company has previously said that it intends to completely liquidate all of its commercial paper assets by the end of this year.
“The utility of Tether continues to be supported by the transparency of its reserves and has been a leading source of stability allowing us to build a tool for the global economy. Our commitment to transparency and the community is a long-standing pillar in the underlying ethos of the company and aligns with our responsibility as a market leader.”
Because of this, Tether has been preparing to submit financial records to the New York Court, such as a balance sheet, general ledger, income statement, and cash flow statement.
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