Bitcoin
BTC$58 802.33

2.47%

Ethereum
ETH$3 158.99

2.73%

Tether
USDT$1.000023

-0.02%

Binance Coin
BNB$537.00

2.16%

Solana
SOL$140.42

2.70%

USD Coin
USDC$0.999889

-0.02%

Tether aims to decrease commercial paper backing of USDT to zero


16 Jun 2022

#Tether

Tether expects to reduce USDT’s commercial paper backing to $8.4 billion by the end of June 2022 and eventually completely remove it. The major stablecoin company Tether is looking to eventually get rid of commercial paper backing for its United States dollar-based stablecoin Tether (USDT). Tether issued an official statement on Wednesday to deny reports alleging that Tether’s commercial paper portfolio is 85% backed by Chinese or Asian commercial papers and is being traded at a 30% discount.

The stablecoin firm called such allegations “completely false,” reiterating that more than 47% of total USDT reserves are now the “United States Treasuries.” In its latest assurance opinion issued in May, Tether reported that commercial paper makes up less than 25% of USDT’s backing, amounting to around $21 billion as of March 31. According to the latest statement, Tether has continued to reduce its current portfolio of commercial paper, decreasing its volumes to $11 billion. The firm expects to further reduce it to $8.4 billion by the end of June 2022, eventually aiming to clear out its commercial paper backing, the statement reads:

“This will gradually decrease to zero without any incurrences of losses. All commercial papers are expiring and will be rolled into U.S. Treasuries with a short maturity.”

Tether also once again mentioned the recent crisis of the Celsius lending platform, noting that Celsius position has been liquidated with no losses to Tether. “Tether has currently zero exposure to Celsius apart from a small investment made out of Tether equity in the company,” the firm said. Tether also argued that reports suggesting that Tether has lending exposure to the crypto venture capital firm Three Arrows Capital are also “categorically false.”


Related

Tether commercial paper exposure now under $50M
Tether commercial paper exposure now under $50M
How
How "Stable" Really Are Stablecoins?
Tether’s attestation report shows commercial paper holdings cut by 21%
Tether’s attestation report shows commercial paper holdings cut by 21%
Tether reveals plans to make Lugano the Bitcoin capital of Europe
Tether reveals plans to make Lugano the Bitcoin capital of Europe
USDT is minted for crypto as $1M bounty offered to unpick reserves
USDT is minted for crypto as $1M bounty offered to unpick reserves
Tether fires back against report it is using reserves for investments and making crypto-backed loans
Tether fires back against report it is using reserves for investments and making crypto-backed loans
Tether promises an audit in months as Paxos claims USDT is not a real stablecoin
Tether promises an audit in months as Paxos claims USDT is not a real stablecoin
Stablecoin inflows to exchanges dip as traders watch Bitcoin from the sidelines
Stablecoin inflows to exchanges dip as traders watch Bitcoin from the sidelines
Tether mints more coins to break $60 billion market cap
Tether mints more coins to break $60 billion market cap

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 73.2% 50 $58 802.33 2.47% 3.63% $1 159 592 582 308 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 77.2% 47 $3 158.99 2.73% 5.29% $379 752 378 655 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94.4% 1 $1.000023 -0.02% -0.01% $112 419 892 990 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 76.4% 47 $537.00 2.16% 5.16% $79 252 356 498 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 80% 29 $140.42 2.70% 1.28% $65 148 922 145 SOL 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 95.6% 1 $0.999889 -0.02% -0.01% $33 923 022 151 USDC 7 days price change
7 XRP (XRP) XRP XRP predictions 80.4% 29 $0.511923 8.53% 17.69% $28 568 046 112 XRP 7 days price change
8 Toncoin (TON) TON Toncoin predictions 82.4% 25 $7.35 1.71% -1.59% $18 428 819 594 TON 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 74.8% 52 $0.110064 3.71% 1.68% $15 970 045 255 DOGE 7 days price change
10 Cardano (ADA) ADA Cardano predictions 82.4% 33 $0.421789 5.00% 18.46% $15 134 211 562 ADA 7 days price change
11 TRON (TRX) TRX TRON predictions 77.6% 41 $0.139556 1.97% 7.60% $12 159 398 125 TRX 7 days price change
12 Lido stETH (STETH) STETH Lido stETH predictions 94% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
13 Avalanche (AVAX) AVAX Avalanche predictions 72.8% 55 $25.95 3.06% 0.71% $10 233 289 511 AVAX 7 days price change
14 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 96% 1 $0.116354 -0.46% 0.23% $10 171 995 609 WTRX 7 days price change
15 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 94.4% 1 $65 806.83 0.78% -2.68% $10 083 957 608 WBTC 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.