The largest issuer of stablecoins Tether reduced the proportion of
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The largest issuer of stablecoins Tether reduced the proportion of commercial paper in the reserve

The firm Tether, which specializes in issuing stable cryptocurrencies (stablecoins), reported a 58% drop in the reserve of commercial paper. The measure was taken as part of fulfilling the obligation to get rid of risky assets in the financial reserve, which ensures a stable price of cryptocurrencies.

    Image source: tether.to

Image source: tether.to

Today, stablecoins have come under scrutiny from the public and regulators, fueled by May’s crash of fiat token TerraUSD. Typically backed by real financial reserves such as government bonds and gold, stablecoins are heavily used in digital asset trading.

Tether’s reserves will include US Treasuries and commercial paper – unsecured short-term debt securities issued by corporations and banks. To date, the total value of commercial paper held by Tether has dropped to $8.4 billion, and by the end of July, the company plans to reduce its volume to $3.5 billion in the cryptocurrency market.

Tether is attempting to prevent a May scenario in which its issued digital “coin” pegged to the US dollar briefly fell below par following the collapse of TerraUSD.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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