The largest stablecoin lost its USD peg last week, which resulted in many holders converting their USDT holdings to other stablecoins or fiat. The USDT de-pegging also created intense selling pressure in the wider crypto market.
Tether Holdings Ease Fears Of Usdt Holders
A part of the latest quarterly report by Tether holdings was dedicated to assuring USDT holders of the full-backing of the USDT stablecoin. The company stated that “we are releasing this special bulletin to assure USDT holders that the token remains fully backed in commercial paper investments and treasury bills.
However, in line with what’s best for USDT, we have reduced our investment in the former and increased our investment in the latter. Despite the intense sell-offs, our stats show that our consolidated assets are much more than our consolidated liabilities.”
The report further disclosed that Tether’s commercial paper holdings have reduced from $24.2B in Q4 2021 to $20.1B in Q1 2022, indicating a 17% drop. Also, Tether reduced its commercial paper holdings by another 20% between last month and now. However, these new reductions will reflect in next quarter’s report earnings.
This Past Week Shows Tether’s Strength And Resilience – Tether’s CTO
After UST’s de-pegging and eventual crash, Tether’s CTO, Paolo Ardoino, commented on Tether’s resilience via Twitter, saying, “events of the last seven days are clear proof of Tether’s strength and resilience. Despite the volatile crypto markets and black swan events, the USDT has remained stable.
Even when it faced several challenges in its early days, Tether has always honored redemption requests from all its verified customers. The recent events further prove that Tether has a strong and liquid reserve.”
USDT De-Pegging And UST Crash
The crash of UST this past week created huge pressure on the stablecoins sector. The selling pressure was so huge that even the largest stablecoin (USDT) lost its USD peg dipping up to $0.95.
The documentation of USDT issuers (Tether) shows that the stablecoin is backed by various financial instruments (such as short-term debt obligations) equal to the USD deposited by its users. The stablecoin is close to reclaiming its peg as it currently trades at $0.999, according to the latest Coinmarketcap data.
Tether Partners With Top Swiss City
As part of the collaboration between Tether and Lugano, Tether will establish a crypto and blockchain school in the popular swiss city. A joint statement from the partners revealed that “the school’s main objective is to better educate the populace about crypto and blockchain technology.”
Information from the school’s website indicates that there will be a 14-day program in July with top industry players as speakers. Paolo Ardoino (Tether’s CTO) and Adam Back (Blockstream CEO) will be among the speakers at the program. The basics of cryptos (including stablecoins) and blockchain analysis are some of the topics to be covered.
