USDT Issuer Tether Reduces Commercial Paper Holdings to Zero

USDT Stablecoin Issuer Tether Pledges to Eliminate Loans by 2023
  • Commercial papers are short-term, unsecured debt instruments.
  • The company had pledged to eliminate its commercial paper entirely by year’s end.

One of the biggest stablecoin, Tether (USDT), has been in the news for a few different reasons recently. Although not everything that happened had a happy ending. An objection was lodged against the prior auditor of the firm for “improper professional conduct.”

At the same time, the court procedure has demanded documents from the stablecoin issuer. On October 3rd, the network said that, despite the turmoil, it had decreased its commercial paper holdings to less than $50 million.

But Tether’s official Twitter account just revealed that the company has successfully written off $30 billion in unsecured short-term debt with zero losses. Business organizations often issue commercial papers, which are short-term, unsecured debt instruments. In contrast to US Treasuries, Commercial Paper is “less stable.”

Task Completed Before Schedule

With a value of $20.1B in May, the company’s commercial paper is a major financial asset. At the end of June, this figure had dropped to $8.5 billion. The company had pledged to eliminate its commercial paper entirely by year’s end.

According to the announcement’s specifics, the moment has come. In a tweet, Tether boasts that it has successfully liquidated $30 billion in commercial paper with zero losses. Company officials also disclosed that they had added over $10 billion in direct exposure to the US Treasury over the previous quarter.

In addition, Tether stressed the fact that the removal of commercial paper demonstrates the company’s intention to sustain its token with the most robust reserves available. The company has now accomplished one of its long-term goals, which was to establish a commercial paper balance of zero percent.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.