Tether and the US Treasuries
The largest stablecoin in the cryptocurrency world, Tether has moved all of its commercial paper holdings into us treasuries. Therefore, as of now, Tether has eliminated commercial paper from its reserves.
USDT has been a concern in the cryptocurrency world for a while now, especially after the attack of Terra’s UST stablecoin, which has been de-pegged, and its price crashed to be worth only a few cents of its dollar peg.
Similar concerns are going around Tether and other big stablecoins like BUSD and USDC, with some saying they are not as risky as Terra’s stablecoin. Financial experts also say it could cause problems if cryptocurrency and stablecoin markets continue to grow and have influence from the traditional markets.
Tether Reserves: 79.62% in Cash & Cash Equivalents & Other Short-Term Deposits & Commercial Paper, 5.25% in Corporate Bonds, Funds & Precious Metals, 6.77% in Secured Loans, and 8.36% in Other Investments.
The Cash & Cash Equivalents & Other Short-Term Deposits & Commercial Paper breakdown is as follows: 0.75% in Non-U.S. Treasury Bills, 54.57% in U.S. Treasury Bills, 5.66% in Reverse Repurchase Agreements, 10.25% in Cash & Bank Deposits, 12.88% in Money Market Funds, and 15.89% in Commercial Paper and Certificates of Deposit.