Faced with criticism about the quality of its reserves, stablecoin issuer tether announced on Thursday that it would remove commercial paper, or unsecured promissory notes, from its reserves.
It also increased his direct involvement in US Treasury Bonds by more than $10 billion last quarter.
The reduction in its commercial paper reserves was part of Tether’s ongoing effort to increase transparency, the company said specified.
See also: How to Buy Tether (USDT)
“Tether has eliminated over $30 billion worth of trading paper without losses, demonstrating how Tether’s reserves are managed conservatively and professionally,” the company said. “The reduction of commercial papers to zero demonstrates Tether’s commitment to backing its tokens with the safest reserves on the market. This is a step towards even greater transparency and trust, not just for Tether, but for the entire stablecoin industry.”
The company had in June refuted claims that Chinese or Asian commercial paper made up 85% of its commercial paper portfolio.
In the months that followed, Tether released regular updates showing a significant drop in its holdings of commercial paper.
Tether hired BDO Italia, an accounting firm part of BDO Global, to routinely review its dollar reserves in August.
The stablecoin issuer announced that it would switch from quarterly to monthly reporting.
See also: Top Fed official sounds alarm over stablecoins – ‘could pose risk to financial stability’
