Tether Intends to Cut Down Commercial Paper Holdings

The collateral portfolio of Tether‘s stablecoin (USDT) does not contain securities issued by Chinese companies. Its issuer has promised to reduce the share of commercial paper from the current $3.7 billion no later than November.

The company’s chief technology officer (CTO) Paolo Ardoino has said that a year ago, commercial paper in USDT reserves was estimated at $30.8 billion. In just a month, the position in them will be reduced to around $200 million.

However, no documents have been provided to support the current composition of the stablecoin’s collateral.

According to the company’s website, the initiative is a community commitment to build a diversified risk-limited portfolio across individual issuers or assets.