Tether (USDT) Takes A New Step To Alleviate Concerns About Its Reserves!

stablecoin company Tether, It is battling speculation about the quality of the dollar-pegged coin USDT.

Tether (USDT) Decreases The Amount Of Financing Bills By 58 Percent

The company cut its financing bond holdings by 58% to $8.5 billion and is expected to reduce it to $3.5 billion by the end of the month.

The company held $20.1 billion in financial bonds in May.

According to the information on Tether’s website, the company aims to reduce the amount of financing bills to zero while converting its assets into US treasury bonds.

A financing bill is a short-term unsecured debt issued by companies.

Its value depends on the companies issuing it. The quality of Tether’s holdings has been the subject of speculation, and how much support the company can count on for USDT has been questioned.

Three Arrows Capital, which went bankrupt last month, cryptocurrency It caused concern in the market because of his financial ties to his companies. USDT denied having any investment in this company.

In May, Tether published an attestation report by independent accounting firm MHA Cayman.

The report states that Tether has $39.2 billion in treasury bonds. The company also had $4.1 billion in bank deposits, $6.7 billion in money market funds and $3.1 billion in secured loans.

The market cap of Tether’s USDT stablecoin slumped from $82.2 billion to $66.1 billion after the TerraUSD (UST) crash in May.

The Wall Street Journal reported that hedge funds opened hundreds of millions of dollars of short positions against Tether.

The company’s CTO, Paolo Ardoino, described hedge funds’ short positions as spreading “FUD” and tried to allay concerns about this issue.

*Not investment advice.

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