Tether is no longer backed by commercial promissory notes

Most of the USDT stablecoin reserves are now comprised of U.S. Treasury securities. According to the company, these are the safest and most liquid assets on the market

Tether is no longer backed by commercial promissory notes

Tether announced that it has completely removed commercial securities (promissory notes, unsecured short-term debt instruments issued by private companies) from Tether (USDT) stablecoin collateral. These securities were replaced by U.S. Treasury securities (T-Bills).

Tether is the issuer of the USDT Stablecoin, which is backed by the U.S. dollar. To maintain the USDT exchange rate, Tether is required to hold a permanent untouchable reserve. The company announced plans to increase its reserves in U.S. Treasury securities by moving money from expiring bills into them in June of this year.

The reduction in commercial paper to zero demonstrates Tether’s commitment to securing its tokens with the strongest reserves in the market, it said in a statement. The U.S. Treasury Bills, or T-Bills, have the shortest maturity of any government bond and are the only type of Treasury security found in both the capital market and the money market.

USDT Stablecoin has a market capitalization of $68.5 billion as of Oct. 14, ranking third among the largest cryptocurrencies, behind only bitcoin and Ethereum. And in terms of daily trading volume, stablecoin ranks first among all cryptocurrencies: over the past 24 hours, the figure was $52 billion.

Latest news:

Oldest U.S. bank BNY Mellon offers Bitcoin and Ethereum storage services

Bittrex was fined $29 million for sanctions violations

Bitcoin mining difficulty increased by 13.5% and broke the previous record