Tether’s Q1 2022 assurance report shows it has reduced the commercial paper in its USDT reserves by 16.8%.
As of March 31, Tether ‘s $82 billion reserves were 86% cash and cash equivalents. The rest includes $4 billion in corporate bonds, $3 billion secured loans, and $5 billion other investments like cryptocurrencies.
The cash and cash equivalent portion consisted of 52% U.S. Treasury bonds, 37% commercial paper, and the rest in money market funds and actual cash deposits.
The report itself shows a 17% reduction in the company’s holdings of commercial paper since the end of 2021.
That means it now accounts for $20 billion of the reserves backing USDT.
Commercial paper is unsecured, short-term debt issued by a corporation.
Although Tether has not disclosed which companies issued its commercial paper, it’s repeatedly drawn attention to the fact that it represents a shrinking portion of its reserves.
The latest report includes beefed-up language and disclaimers from MHA Cayman, a Cayman Island-based accounting and audit firm, that their assessment does account for turbulent market conditions.