Finst

USDT reserves are now 100% U.S. Treasury bonds

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

By Finst News
• 3 min read
USDT reserves are now 100% U.S. Treasury bonds

The reserves backing the Tether USDT stablecoin are now 100% U.S. Treasuries.

Tether aims to boost transparency

Stablecoin issuer Tether has fully replaced its portfolio share in commercial paper with investments in U.S. government bonds. The company announced this yesterday. "Commercial paper" is short-term debt that companies issue to raise financing. With the announcement, Tether says it wants to increase transparency, with investor protection at the core.

U.S. Treasuries are more stable and safer

Meanwhile, U.S. Treasuries, which now make up 100% of the reserve portfolio, are viewed as more stable and safer. For several quarters, the company has been gradually reducing the riskier portion. "Today the goal is to bring it down until zero is reached," Tether proudly says. Recently, the largest stablecoin by market cap, USDT, launched on the NEAR protocol.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.