{"id":26110,"date":"2022-10-14T11:48:21","date_gmt":"2022-10-14T06:18:21","guid":{"rendered":"https:\/\/coinswitch.co\/switch\/?p=26110"},"modified":"2022-10-14T11:48:21","modified_gmt":"2022-10-14T06:18:21","slug":"tether-chucks-commercial-papers-embraces-us-t-bills","status":"publish","type":"post","link":"https:\/\/coinswitch.co\/switch\/news\/tether-chucks-commercial-papers-embraces-us-t-bills\/","title":{"rendered":"Tether chucks commercial papers, embraces US T-Bills"},"content":{"rendered":"<p>Tether Holdings announced on Thursday that it has removed commercial papers from its reserves entirely as part of its commitment to back its tokens with completely secure reserves. The issuer of the world\u2019s largest stablecoin USDT said the investments will be replaced by US Treasury Bills, which are more secure and liquid instruments.<\/p>\n<p>The firm made the announcement through a series of tweets. Commercial papers are unsecured debt instruments issued by corporations to raise funds to fulfill short-term requirements.<\/p>\n<p>Tether used to hold commercial papers worth more than $30 billion in its reserve, which it has now eliminated without taking any losses. It has also taken additional direct exposure to US Treasuries by more than $10 billion in the last quarter.<\/p>\n<p>USDT is the leading dollar-pegged stablecoin and has a circulating supply of 68.426 billion. It has added 2 billion tokens to supply in the last three months.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">BREAKING: Tether is proud to announce that we have completely eliminated commercial paper from our reserves. This is evidence of our commitment to back our tokens with the most secure, liquid reserves in the market. (1\/3)<a href=\"https:\/\/t.co\/zBa9jRe7so\">https:\/\/t.co\/zBa9jRe7so<\/a><\/p>\n<p>&mdash; Tether (@Tether_to) <a href=\"https:\/\/twitter.com\/Tether_to\/status\/1580600942323720192?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">October 13, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The chorus for replacing the risky commercial papers from the reserve grew louder after the crash of Terra Luna and the failure to maintain the $1 peg of UST stablecoin. The development roiled the market, leading to the crash of the DeFi ecosystem, which is yet to recover fully.<\/p>\n<p>In a <a href=\"https:\/\/tether.to\/en\/tether-slashes-commercial-paper-to-zero\/\" target=\"_blank\" rel=\"noopener\">blog post,<\/a> Tether\u2019s management wrote: \u201cThis announcement comes as part of Tether\u2019s ongoing efforts to increase transparency, with investor protection at the core of the management of Tethers\u2019 reserves. Reducing commercial papers to zero demonstrates Tether\u2019s commitment to backing its tokens with the most secure reserves in the market.\u201d<\/p>\n<h3>A run for its money<\/h3>\n<p>The stablecoin market is heating up with the new and current players upping their game to increase their market share, thanks to <a href=\"https:\/\/coinswitch.co\/switch\/opinion\/the-stablecoin-wars-are-coming-heres-why\/\" target=\"_blank\" rel=\"noopener\">improved economics<\/a>. For perspective, the reserves backing the stablecoins are yielding higher interest income in the wake of aggressive rate hikes by the Federal Reserve.<\/p>\n<p>Stablecoin issuers are launching their stablecoins on multiple blockchains to increase adoption and to remain competitive in the market. In recent weeks, USDT has been added to the Polkadot chain and Near blockchain, taking the stablecoin live on 11 blockchain networks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tether Holdings announced on Thursday that it has removed commercial papers from its reserves entirely as part of its commitment to back its tokens with completely secure reserves. The issuer of the world\u2019s largest stablecoin USDT said the investments will be replaced by US Treasury Bills, which are more secure and liquid instruments. The firm [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":26111,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[7701],"tags":[6467,6536],"class_list":["post-26110","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-crypto","tag-news"],"acf":{"json_ld_schema":"\n[{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"@id\":\"https:\/\/coinswitch.co\/switch\/us-stocks\/wall-street-jottings\/#FAQPage\",\"headline\":\"Wall Street jottings: A personal, guided tour to investing in US stocks\",\"keywords\":\"Personal Guide, US Investing, \",\"datePublished\":\"2022-07-22T13:28:55+05:30\",\"dateModified\":\"2022-09-19T19:04:28+05:30\",\"dateCreated\":\"2022-07-22T13:28:55+05:30\",\"author\":{\"@type\":\"Person\",\"name\":\"Deepan Datta\",\"description\":\"A keen observer of the crypto market and believes crypto\/blockchain will bring the next phase of the industrial revolution and build an inclusive society.\",\"url\":\"https:\/\/coinswitch.co\/switch\/author\/deepan\/\",\"sameAs\":[],\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/ea29018d03e4615947c5df3ce7b4030b?s=96&d=mm&r=g\",\"height\":96,\"width\":96}},\"image\":[{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/coinswitch.co\/switch\/us-stocks\/wall-street-jottings\/#primaryimage\",\"url\":\"https:\/\/coinswitch.co\/switch\/wp-content\/uploads\/2022\/07\/Wall-Street-Jottings.jpg\",\"width\":\"1800\",\"height\":\"1080\"},{\"@type\":\"ImageObject\",\"url\":\"https:\/\/coinswitch.co\/switch\/wp-content\/uploads\/2022\/07\/Wall-Street-Jottings-1200x900.jpg\",\"width\":\"1200\",\"height\":\"900\"},{\"@type\":\"ImageObject\",\"url\":\"https:\/\/coinswitch.co\/switch\/wp-content\/uploads\/2022\/07\/Wall-Street-Jottings-1200x675.jpg\",\"width\":\"1200\",\"height\":\"675\"}]}]\n","json_ld_custom_schema":"","key_takeways":false,"youtube_vodeo_url":"","seo":{"title":"","keywords":"","description":"","canonical":""},"blog_banner_image":false,"blog_coin":false,"download_the_app":{"button_value":"","button_url":""},"twitter_card":{"twitter_title":"","twitter_description":"","twitter_link":""},"maturity_tag":"","post_author":false,"guest_author":false,"hide_toc":true,"select_disclaimer":"Article Default Disclaimer"},"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/posts\/26110","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/comments?post=26110"}],"version-history":[{"count":1,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/posts\/26110\/revisions"}],"predecessor-version":[{"id":26113,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/posts\/26110\/revisions\/26113"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/media\/26111"}],"wp:attachment":[{"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/media?parent=26110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/categories?post=26110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/tags?post=26110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}