- Alistair Milne shared his thoughts on Tether bringing its commercial paper to zero.
- Milne states that Tether has now become a large holder of the US government debt.
- Tether announced that it has brought its commercial paper to zero.
Alistair Milne, a bitcoin investor and a financial analyst, shared his thoughts on the recent move by Tether. He states that Tether has now become a major holder of US government debt.
Plot twist: Tether becomes such a big holder of US government debt that they are systemically important, forcing regulators to tread carefully https://t.co/Io9E4xNdoQ— Alistair Milne (@alistairmilne) October 13, 2022
Milne added that Tether has now become systematically important. According to him, this will probably force the regulators to tread carefully with the stablecoin giant. Tether announced yesterday that in the previous quarter, it had increased its US Treasury direct exposure by $10 billion.
This announcement further ensures that Tether has a diversified portfolio with limits to exposure to higher-risk assets. It demonstrates Tether’s commitment to lead by example, as part of our ongoing push toward increased transparency for the stablecoin industry. (3/3)— Tether (@Tether_to) October 13, 2022
Tether announced on October 3 that the company has slashed its commercial paper holding by $50 million. The firm was also anticipating bringing it to zero by the end of the year. However, the company announced in a blog post yesterday that its commercial paper is now zero.
The stablecoin giant stated that it has cut off $30 billion of short-term debt without facing any losses. In the announcement, Tether speaks about its professional reserve management that made this possible.
Tether (USDT), has recently been popping up in the news for a wide range of reasons. But not all of it was for the better. The company’s former auditor was given a complaint for “improper professional behavior.”
The SEC had charged the company with engaging in “improper professional conduct” and “severe breaches” of federal securities laws. The stablecoin issuer was asked to present papers to the court in a proceeding in the meantime.
However, Tether has been pushing hard on its move to bring its commercial paper to zero. Stablecoins have been facing scrutiny ever since the fall of Terra UST. However, Tether has been trying its best to prove the stability and strength of its reserves.
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