Faced with criticism over the quality of its reserves, stablecoin issuer Tether announced Thursday that it was slashing commercial paper, or unsecured promissory notes, from its reserves.
It also increased its direct exposure to U.S. Treasuries by more than $10 billion in the last quarter.
Slashing its commercial paper reserves was part of Tether’s ongoing efforts to increase transparency, the company stated.
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"Tether has eliminated over $30 billion dollars of commercial paper without any losses, proof of how Tethers’ reserves are conservatively and professionally managed," the company stated. "Reducing commercial papers to zero demonstrates Tether’s commitment to backing its tokens with the most secure reserves in the market. This is a step towards even greater transparency and trust, not only for Tether but for the entire stablecoin industry."
The company in June had refuted allegations that Chinese or Asian commercial paper accounted for 85% of its portfolio of commercial paper.
In the months that followed, Tether released regular updates revealing a substantial decline in its holdings of commercial paper.
Tether engaged BDO Italia, an accounting firm that is a part of BDO Global, in August to start doing routine checks of its dollar reserves.
The stablecoin issuer announced that it will switch from quarterly to monthly reporting.
See Also: Top Fed Official Sounds Alarm On Stablecoins - 'Could Pose A Risk To Financial Stability'
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