Here is Tether (USDT) latest bet to make its stablecoin safer

Tether Limited, issuer of the stablecoin (USDT), said it reduced the amount of its commercial paper in the first quarter of 2022 to bolster the integrity of its reserves.

Tether maintains that its commercial paper was reduced by 17%, from $24.2 billion in the previous quarter to $19.9 billion. It also increased its exposure to US Treasuries from $34.5 billion to $39.2 billion.

#Tether Stable Coin Reserves Breakdown. -6.02% Other Investments (including digital tokens) -3.82% Secured Loans. -4.52% Corporate Bonds, Funds & Precious Metals. -85.64% – Cash & Cash equivalent & Other Short – Term Deposits & Commercial Paper.

The firm also said it aims to reduce its exposure to corporate bonds by a further 20% in the second quarter, which will be reflected in its report.

Bloomberg reported in October that major Chinese companies had issued most of Tether’s commercial paper, prompting some analysts to doubt the quality of its reserves. Tether has chosen not to reveal the identity of these companies.

Tether (USDT) got hot last week!

Tether is the company behind Tether (USDT), the world’s largest stablecoin. It uses a basket of assets to keep the value of its centralized stablecoin stable at $1, including corporate debtUS treasury bills and some cash reserves.

Investor concerns over TerraUSD’s recent collapse have left the firm hot over the past week with the risk of a collapse in turn. USDT’s market capitalization fell nearly $9 billion over the week due to an increase in dollar redemptions.

Read also Do Kwon, CEO of Terra (LUNA, UST) now fears for his life – a dark individual is coming into his home!

Furthermore, the stablecoin had momentarily lost its peg to the dollar, up to $0.95 on some exchanges.

Nonetheless, the company said in a May 12 statement that all buybacks will be honored as proof of its solvency. USDT was able to reestablish its peg to the dollar.

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