Struggling Tether increases stake in Treasuries

Struggling Tether increases stake in Treasuries

The first look at its reserves since the recent sell-off rocked the token, the world's largest stable coin said it had boosted its holdings of US government debt while cutting exposure to riskier assets.

After the demise of the TerraUSD token, a series of cryptocurrencies designed to keep a steady value are in sharp focus, and they are in sharp focus.

A stable coin is widely used in cryptocurrencies trading, with Tether being the predominant medium for moving funds between cryptocurrencies or regular cash.

After cryptocurrencies fell to as low as 95 cents, Tether broke its 1: 1 peg with the dollar before regaining faith in a key cog in the coin economy, according to CoinMarketCap.

The token, run by a British Virgin Islands company, is designed to hold a value of $1. Tether promises to have enough reserves to allow all holders of the over $70 billion worth of Tether to exchange their token for dollars.

Tether said it boosted its holdings of Treasuries by over 13% to $39.2 billion and cut its exposure to riskier commercial paper short term debt issued by companies by around 17% to $20.1 billion in the first quarter.

As of March 31, Tether's reserves had $82.4 billion in liabilities, with some $82.3 billion in liabilities. Since the Q 1 report was written, the company has reduced its holdings of commercial paper by 20 per cent, Chief Technology Officer Paolo Ardoino said.

Financial regulators around the world have warned that stable coins could risk wider financial stability, with Britain among major economies looking to regulate the sector.