Tether reduced its commercial paper holdings by 17% from $24.2 billion to $20.1 billion in the quarter ended March 31, according to its latest attestation report.
The majority of this $20.1 billion(around $18 billion) is comprised of A-1 and A-2 paper, which qualify as investment grade.
The reduction has continued with a further 20% cut since April 1, which will be reflected in the Q2 report, the stablecoin issuer said.
Tether has also slightly reduced its cash deposits from $4.2 billion to $4.1 billion and increased its U.S. Treasury bill holdings from $34.5 billion to $39.2 billion.
The “Other Investments” category, which includes digital tokens, has remained consistent, falling slightly from $5.02 billion to $4.96 billion. This area has been thought of as the most troubling aspect of the attestation reports due to uncertainty about what exactly these assets are, which Tether does not disclose.
Furthermore, the report does not account for the recent pullback in crypto markets witnessed since early May.
Tether’s attestation report is authorized by accounting firm MHA Cayman. As part of a settlement with the New York Attorney General in February 2021, Tether must release quarterly attestations of its assets and liabilities in order to be more transparent when it comes to what exactly backs its USDT.
Tether now has a total of $82.4 billion in assets, up from $78.7 billion on Dec. 31 2021.
Read more: Despite Recent Bumps in the Road, Stablecoins Will Stick Around
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