Tether's holdings of US Treasury Bills increased 13% in Q1 to $39.2B.
Tether (USDT) revealed that it reduced its reserves allocation to commercial paper assets and boosted its allocation to US Treasury bills in Q1 2022.
Over the first quarter of 2022, its commercial paper holdings declined by 17%, from around $24B to $20B, following the additional 20% recession since the beginning of April that will be demonstrated in the Q2 2022 report.
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According to the statement, Tether has also displayed a 13% increase in US Treasury bills and money market funds that have grown from $34.5B to $39.2B. On top of that, secured loans have additionally decreased by $1 billion, whereas the average rating of certificates of deposit and commercial paper has risen from A-2 to A-1.
The Chief Technology Officer of Tether Paolo Ardoino stated that:
“Tether has maintained its stability through multiple black swan events and highly volatile market conditions and, even in its darkest days, Tether has never once failed to honor a redemption request from any of its verified customers. This latest attestation further highlights that Tether is fully backed and that the composition of its reserves is strong, conservative, and liquid.”
As implied, it indicates the company's determination to minimize its commercial paper investments, which has resulted in an increase in its holdings of US Treasury Bills.
Back in February, Tether was ordered to report its reserves after New York authorities stated that the platform had misrepresented the degree to which Tether (USDT) coins were backed by fiat collateral. Thus, every quarter, Tether is obligated to report its reserves.