Tether, the world’s largest stablecoin, reduced its exposure to risky commercial paper in the first quarter of 2022 to মার্কিন 39.2 billion, raising the U.S. government’s debt by more than 13% to 39.2 billion, the company said Thursday.
Stablecoins – a variety of cryptocurrencies designed to maintain a stable standard – have been in sharp focus since the crypto sector closed last week.
As the cryptocurrency depreciated, Teether broke its 1: 1 peg with the dollar, falling below 95 cents, according to CoinMarketCap, before recovering.
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In his first report on the state of its reserves since the sale, Teether said it had reduced the risky commercial paper – short-term debt issued by companies – by about 17% to 19.9 billion.
Since writing the Q1 report, Tether has reduced its commercial paper by an additional 20%, Tether Chief Technology Officer Paolo Ardoino said in a statement.
Stablecoins, usually managed by reserves of traditional assets such as dollars, gold and government debt, are widely used in cryptocurrency trading.