Tether Holdings Ltd. has released the most detailed version of the assets behind widely used digital currencies in an attempt to address regulatory concerns that have not been fully disclosed in the past about the currency base.
Tether is a stablecoin, a particular type of cryptocurrency designed to mimic the value of the US dollar. Its use has exploded in recent years and is the third most widely held cryptocurrency after Bitcoin and Ether.
Traders use tethers to get in and out of other cryptocurrencies because of their ease of use and fast transaction times. Trading directly between dollar and digital currencies often involves high transaction costs and processing delays.
About half of Tether’s $ 62.8 billion in assets were held in commercial paper and certificates of deposit, according to a report released by the company on Monday. The credit ratings of these bonds were detailed for the first time, with approximately 93% of the highest short-term credit ratings rated at A-2 or higher. Most of the assets are said to have been rated by Standard & Poor’s, if available. It also relied on the ratings of Fitch Ratings and Moody’s Corporation.
According to the report, 24% of assets are Treasury short-term securities, which are considered to be the safest to hold, up from about 2.2% detailed in May.
Tether states huge reserves held in investment grade commercial paper
Source link Tether states huge reserves held in investment grade commercial paper