Tether Reduces USDT Collateral in Commercial Paper by 17%

USDT stablecoin issuer Tether Holdings Limited reduced its commercial paper reserves by 17% in Q1 2022. By the end of the second quarter, the company intends to reduce the amount of collateral in these assets by another 20%.

In the first three months of 2022, the company’s commercial paper reserves fell from $24.2 billion to $20.1 billion, according to an audit report from accounting firm MHA Cayman.

As of March 31, Tether has a total holding of over $82.42 billion. According to CoinGecko, the USDT market supply is valued at $74.12 billion at the time of writing. Per the report:

“The consolidated group’s reserves created against the issued digital tokens exceed the amount required to redeem them.”

MHA Cayman has also noted an increase in USDT collateral in US Treasuries. Their volume increased from $34.5 billion to $39.2 billion.