Tether cuts holdings of commercial paper, says majority of exposure in Treasuries -CTO

Smartphone with Tether logo is placed on displayed U.S. dollars in this illustration taken, May 12, 2022. REUTERS/Dado Ruvic/Illustration

LONDON/NEW YORK, May 12 (Reuters) - Tether, the third largest cryptocurrency in terms of market capitalization, said the majority of its reserves are in U.S. Treasuries after having reduced its exposure to commercial paper over the last six months, its Chief Technology Officer Paolo Ardoino said in a Twitter Spaces chat on Thursday.

Tether, a reserve-backed stablecoin which is supposed to be pegged 1:1 to the U.S. dollar, dropped to as low as 95 cents earlier in the global session, according to CoinMarketCap price data. It was last at 99 cents.

Stablecoins are cryptocurrencies designed to be protected from the volatility that makes it difficult to use digital assets for payments or as a store of value. read more

Ardoino did not say what proportion of the reserves are currently held in commercial paper but said it is "still going down" and that a quarterly update on the reserves would be available later in the month.

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