Stablecoin reported Friday that Tether is reducing its holdings of commercial paper according to plans. It has reached its target amount of $8.4 billion in commercial paper, according to intentions first disclosed last month, and will continue to reduce its holdings in the near future.
On July 31, Tether’s $5 billion commercial paper holdings will expire, leaving the company with $3.5 billion worth of its portfolio. The report emphasized that as a result, treasury reserves will constitute a larger proportion of the company’s reserves.
Tether stablecoin USDT had about $20.1 billion in commercial paper backing as of March 31. The company’s quarterly assurance opinion stated that the percentage of commercial papers in its reserves was declining and that its reserves were fully backed.
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The stablecoin was briefly de-pegged in May amid widespread market turmoil. On June 15, two days after crypto-lending platform Celsius announced it was halting withdrawals, Tether issued a statement refuting rumors that 85% of that wallet was trading heavily discounted Asian and Chinese commercial papers. Tether stated at the time that she had a goal of reducing her portfolio of commercial paper to zero. The market capitalization of USDT fell to its lowest level in eight months, at less than $70 billion, a few days later.
However, these are not all tether stability problems. Tether chief technology officer Paolo Arduino said in a long Twitter thread on Monday that stablecoins are “under attack” from hedge funds. He went on to say that the hedge funds themselves “believed and helped every FUD that the honest have posted in the past months [and] years”.