Tether — the issuer of the world’s most used stablecoin — reduced its investments in commercial paper and certificates of deposit during the last quarter of 2021, accounting to an accounting firm’s report.
British Virgin Islands-based Tether had assets of at least $78.7 billion, the accounting firm said. Of that, the company invested $24.2 billion into certificates of deposit and commercial paper, down from about $30.6 billion at the end of September, according to accounting reports.
The bulk of the commercial paper and certificates of deposits were rated A-1 and A-2, according to accounting firm MHA Cayman.
MHA Cayman said it’s not expressing an opinion about the effectiveness of Tether’s internal controls and noted that Tether is currently involved in three legal cases and that any contingent liabilities haven’t been accrued yet.
Some other stablecoin issuers have been moving away from using commercial paper as backing for their tokens as a way calm investors’ fears over their risks.
Traders often move into Tether during times of high market volatility, especially during bear markets. Most coins have plummeted in value in recent months, with Bitcoin down by more than 40% since hitting its all-time high in early November.
Tether’s market cap had ballooned to nearly $80 billion from about $72 billion in early November, according to CoinMarketCap.
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