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USDT reserves now 100% US Treasury bonds

The reserves backing the Tether USDT stablecoin are now 100% US Treasury bonds.

By Mike Hesp
• 1 min read
USDT reserves now 100% US Treasury bonds

The reserves backing the Tether USDT stablecoin are now 100% US Treasury bonds.

Stablecoin provider Tether has fully replaced its exposure to commercial paper with investments in US Treasury bonds. The company announced this on Thursday announcing it.

"Commercial paper" is short-term debt issued by companies to raise financing. With the announcement, Tether says it aims to improve transparency, putting investor protection at the center.

Meanwhile, US Treasury bonds, which now make up 100% of the reserve portfolio, are viewed as more stable and safer. For several quarters, the company has been steadily reducing the riskier portion.

"Today the goal is to bring it to zero, and we’ve achieved that," Tether proudly proclaims. Recently, the largest stablecoin by market capitalization, USDT, launched on the NEAR protocol.

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