Tether reduces its exposure to ‘commercial paper’

The stablecoin Tether has the majority of its reserves in U.S. Treasuries, its Chief Technology Officer Paolo Ardoino has said.

Tether has dropped its exposure to commercial paper over the last six months, Ardoino said in a Twitter Spaces chat.

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 according to CoinMarketCap price data.

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