Tether Eliminates Commercial Paper From Reserves in Transparency Push

Tether has removed the commercial paper from its reserves, according to the asset-backed stablecoin issuer’s most recent blog post. A Commercial paper is short-term unsecured debt issued by a company. 

Regulators have previously criticized Tether for not being clear enough about the reserve composition of USDT, the world’s most traded cryptocurrency. With today’s action, the company hopes to resolve these issues. According to Tether, keeping its reserves in safer assets will help increase the company’s transparency and provide greater protection for investor funds.

Tether also stated that it will increase openness by disclosing USDT reserve statistics in its quarterly attestation reports.

Tether, which produces the world’s most traded cryptocurrency, USDT, has been chastised by regulators for failing to be transparent about the reserves that back its coin. The business stated that today’s action would assist in alleviating said fear.