The USDT issuer company confirmed that it will reduce its commercial paper portfolio by $5 billion by the end of July of this year.
Tether is the biggest Stablecoin issuer company, USDT. Tether, a subsidiary of Bitfinex crypto exchange, was the first in the crypto industry which introduced the stablecoin concept and that is the reason this company is getting the advantage of being a first-mover company. The current global trade market cap of USDT is $66.23 billion.
On 1 July, Tether published its report regarding its efforts to reduce commercial papers. Through the announcement, Tether confirmed that it will reduce the net $5 billion load of commercial paper and that it will reduce the paper asset holdings down from $8.4 billion to $3.5 billion.
Earlier this, Tether announced on 19 May that it will cut Down its commercial papers assets holdings to zero and will continuously increase its share of U.S. treasuries.
Terra collapse, panic & Tether
In May 2022, Terra blockchain’ UST & Luna token touched ground price under extreme market conditions. And further that created panic among crypto Investors. In that time frame, the majority of the stablecoins saw an outflow of funds. In particular, the biggest market cap Stablecoin USDT faced a downfall in its pegged value by approx 2%, which was the biggest panic in the crypto industry.
A few days ago, Tether CTO Paolo Ardoino claimed that the majority of the crypto Companies tried to short their stablecoin holdings & gained profit and that created more panic among the crypto Investors toward the stablecoin market.
On 27 July, Tether’s CTO noted that Tether’s USDT faced Billions of dollar outflow but due to better full backing UST stabilized easily by the team.