Specializing in the issuance of stable cryptocurrencies (stablecoins), the company Tether reported a reduction in the reserve of commercial paper by 58%. The measure was taken as part of the fulfillment of obligations to get rid of risky assets in the financial reserve, which ensures a stable price of cryptocurrencies.
Image Source: tether.to
Today, stablecoins have come under scrutiny from the public and regulators, fueled by the crash of the TerraUSD fiat token in May. Usually backed by real financial reserves such as government securities and gold, stablecoins are heavily used in digital asset trading.
Tether’s reserves will include US Treasury bonds and commercial paper – unsecured short-term debt obligations of companies and banks. To date, the total value of commercial paper held by Tether has decreased to $8.4 billion, and by the end of July the company plans to reduce their volume to $3.5 billion. assets underlying the token – this is especially true in the context of the collapse of the cryptocurrency market.
Tether seeks to prevent a May scenario, when the digital “coin” it issued, pegged to the US dollar, briefly fell below par following the collapse of TerraUSD.
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