Stablecoin issuer Tether has eliminated commercial paper from its reserves and says it has also increased its direct exposure to U.S. Treasuries by more than $10 billion in the last quarter.
The move has eliminated more than $30 billion of commercial paper without any losses, the company said in a series of tweets.
“This is evidence of our commitment to back our tokens with the most secure, liquid reserves in the market,” Tether wrote in a tweet. A spokesperson directed The Block to a blog post announcing the news.
Tether has said for months that it was planning to improve the quality of its reserves, in part by reducing the amount of commercial paper it holds. Tether claims its tokens are pegged one-to-one with a matching fiat currency, and are backed by the company’s reserves.
The move comes months after the Terra crisis in May, when the company’s algorithmic stablecoin collapsed.
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