Top stablecoin Tether slashes commercial paper holdings amid crypto gloom
— Address concerns, Plans, End, Collapse, Companies, Riskier assets, Holdings, Slashes, Reserves consist, Paper — 1 min read
Tether, the world’s largest stablecoin, has cut its commercial paper holdings by 58%. The company plans to reduce its holdings to $3.5 billion by the end of July. Stablecoins are widely used in cryptocurrency trading and Tether is the predominant medium for moving funds between crypto or into regular cash. Tether had slid below its 1:1 peg to the dollar in May before recovering, a fall that had sent shockwaves across the sector after the collapse of the TerraUSD token in May, sending shock waves across the crypto market. The firm has $8.4 billion of commercial paper, which refers to short-term debt issued by companies, to reduce it to zero by July end of this month. Source