Tether, the issuing entity of the famous stablecoin USDT strikes a blow. The company announces that it has offloaded 30 billion dollars from business paper (CP), in favor of safer assets. In doing so, Tether sends a strong and fundamentally reassuring message to the entire crypto industry.
Tether (USTD) keeps its commitments and reassures the crypto market
Tether has made public on its official website the updated status of the assets supporting its USDT stablecoin.
In detail, this inventory is likely to reassure the entire ecosystem. The information made available publicly tends to accredit that the accounts of the company are fundamentally robust and well maintained.
More importantly, these elements demonstrate that Tether has not spared its efforts to offload certain underlyings known to be volatile – cLike CP commercial papers – in favor of sure values such as US treasury bonds.
It is thus to 30 billion in CP which Tether got rid of in just over a year, as the company promised.
“The zeroing of the Treasury Notes demonstrates Tether’s commitment to backing its tokens with the most secure reserves in the market. This is a step towards even greater transparency and trust, not only for Tether but also for the entire stablecoin industry. »
Tether release
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More US Treasuries
Following the example of MakerDAOTether has maximized its exposure to “T-Bills”, or Treasury bill. T-Bills are short-term bonds issued by the US government, assets considered very solid and with excellent liquidity.
If the news is important, it’s that the reality (or rather the suspicion that it isn’t) of sufficient liquidity to help guarantee the stability of USDT has always been questionable. Indeed, Tether and its parent company Bitfinexhave not always played the game of the most total transparency over the years.
Times are changing, and it’s likely that in a post-collapse world of the UST stablecoin, the absolute need for transparency and verifiable investor assurance has now taken precedence over Tether’s legendary discretion over its operational cash flow detail.
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