In accordance with promises it made earlier this year, top stablecoin issuer Tether (USDT) has begun to slash its commercial paper holdings.
In the second quarter of 2022, Tether reduced its commercial paper holdings from $20 billion to $8.5 billion, a decrease of more than 58%, according to a new report from the company.
The report was completed with a member firm of BDO, one of the biggest public accounting networks in the world.
Commercial papers are unsecured promissory notes with fixed maturity dates primarily issued by large institutions to obtain funds for their short-term debt obligations.
Tether says it plans to reduce its commercial paper holdings to approximately $200 million by the end of August and to zero by the end of the year. Previously, the stablecoin issuer had said it planned to reduce its commercial paper holdings to zero by October/early November.
Tether also says it increased its holdings of cash and bank deposits by 32% in Q2.
The company’s CTO, Paolo Ardoino, says Tether’s utility is supported by the transparency of its reserves.
“Our commitment to transparency and the community is a long-standing pillar in the underlying ethos of the company and aligns with our responsibility as a market leader. We have once again demonstrated that commitment by aligning with BDO, one of the world’s top accounting firms.”