Tether plans to narrow commercial debt holdings in its reserves - CNBC

Tether (USDT-USD), a cryptocurrency firm controlled by the owners of crypto exchange Bitfinex, is planning to further narrow commercial debt holdings in its stablecoin reserves, the company told CNBC in an interview Wednesday. The company has already been reducing holdings of commercial paper, or short-term corporate debt, as some grapple what its stablecoin is backed by specifically. Recall that Tether (USDT-USD) cut its commercial paper holdings by 21% in Q4 2021, and almost doubled its allocation to Treasury bills, or short-term liquid government debt. “Over time we will keep reducing the commercial paper, we aren’t finished yet with the reduction,” Paolo Ardoino, chief technology officer of Tether and Bitfinex, told CNBC, adding that the company has moved money from commercial paper to U.S. Treasuries. Tether's (USDT-USD) stablecoin, which is pegged to the U.S. dollar, is the largest in the world with a market cap of $82.63B. While stablecoins are supposed to be