The largest stablecoin in the world's history, Tether, declared a fourth-quarter profit of $700 million and stated that it no longer holds any commercial paper as part of the reserves supporting its USDT currency.
Its interests were mostly in the United States ($39.2 billion). As of December 31, according to a BDO attestation, Treasury bills were outstanding. Money market funds, cash, and other assets made up the remaining $67 billion of its assets. According to a strategy to decrease secured loans to zero this year, they were cut by $300 million.
By the end of 2022, Tether established a target to be free of commercial paper, a form of short-term, unsecured debt, and it succeeded in doing so.
After the algorithmic stablecoin TerraUSD (UST), which had an estimated market value of $18 billion before it crashed, the quality of the assets supporting stablecoins came under increased scrutiny in 2017. Tether revealed that 49% of its assets were backed by commercial paper in May 2021, when it first disclosed a breakdown of its reserves.
The percentage of commercial paper on Tether's books gradually decreased, according to subsequent attestation reports.
In a complaint that claimed Tether planned to release the stablecoin as part of an effort to raise the price of bitcoin, a U.S. judge ordered the business to turn over papers pertaining to USDT's backing in September (BTC).