According to a statement released by the stablecoin issuer on Thursday, Tether has cleared its holdings of $30 billion worth of commercial paper.
Tether has been promising investors for some months that it will enhance the overall quality of its reserves by decreasing the quantity of commercial paper it has now.
Tether has removed the commercial paper from its reserves and reports that it has boosted its direct exposure to U.S. Treasuries by more than $10 billion over the course of the most recent quarter.
According to a series of tweets published by the corporation, the decision has resulted in the loss-free elimination of more than $30 billion worth of commercial paper.
Tether said in a tweet that “this is proof of our commitment to back our tokens with the most safe and liquid reserves in the market.” A spokeswoman referred The Block to a post on a blog that had been written to announce the news.
Tether has been public about its intentions for some months now, stating that the company intends to enhance the quality of its reserves. Tether said that its tokens are backed one-for-one by a corresponding fiat currency and that these tokens are guaranteed by the reserves of the corporation.
This decision was made many months after the Terra issue, which occurred back in May when the company’s algorithmic stablecoin failed.
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