Quick take:
- Tether’s CTO has stated that the company has reduced its holdings of commercial paper and increased its US Treasuries as reserves for USDT
- Tether announced also that the USDT stablecoin has stood the test
- USDT was also depegged this week, as stablecoins were the focus after UST’s and LUNA’s depreciation on the markets
Tether’s and Bitfinex’s CTO, Paolo Ardoino, has updated on the status of USDT reserves during a Twitter Spaces chat on Thursday. According to Mr. Ardoino, the majority of Tether’s reserves are in US Treasuries after the company reduced its exposure to commercial paper over the last six months.
Tether was depegged from $1 Mark
The update on Tether’s reserve comes against the background of USDT depegging. Crypto-traders panicked when UST depegged , and LUNA suffered severe inflation. USDT traded as low as $0.01 at the height of Tether’s depegging. 95, but the stablecoin has since resumed to $0. 9988, which is very close to the $1 mark.
Tether Issues a Statement Explaining that USDT has Withstood other Black Swan Events
The depegging of Tether and the subsequent anxiety surrounding the future of USDT resulted in the team at the company issuing a statement to allay any fears in the markets. The team explained that it was “business as usual” [for USDT] in the face of market panic following the week’s market movements .’
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The Tether team explained that USDT redemptions continue at a 1:1 rate with the US Dollar. They also added that this was not the first time Tether’s stability had been tested. They stated:
Tether has remained stable through many black swan events, highly volatile market conditions, and has never failed to honor redemption requests from its customers even in its darkest hours. Tether will continue to do so whic