Amid the ongoing intense battle between the two largest stablecoins, Tether (USDT) made an important announcement. At press time, USDT has a market cap of over $65.8 billion.
Tether to reduce its commercial paper holdings
According to the press release, Tether clarified its holdings of commercial paper, which is falsely bolstered in the market. It mentioned that the company’s portfolio does not contain any Chinese commercial papers. As of today, the exposure is approximately $3.7 billion. However, it has been reduced from $30 billion in July 2021.
Tether added that it plans to lower it to $200 million by the end of August 2022. While it aims to bring it down to zero in late October or early November 2022.
It stressed that Tether ensures that it maintains a diverse portfolio with limited exposure to assets or individual issuers. The commercial papers reduction decision is a community commitment as it aims to lead the stablecoin race.
The release further raised the issue of the spread of false information in the cryptocurrency industry. Tether called it the biggest threat and compared it to scams, hacks and even cyber attacks. Because these things affect the reputation of the company and the entire digital asset market.
Will USDT Lose Stablecoin Crown?
Meanwhile, USDT is losing the battle for holding on as the crypto market’s largest stablecoin to USDC. According to the report, the USD coin will overtake Tether’s stablecoin in October. The USDC has a market cap of over $55.23 billion at press time.
The report stated that USDT’s market dominance is declining. In November last year, it fell below 50%. Since then, the stablecoin has been unable to recover it. While the recent collapse has made it even more difficult.
Tether’s market cap dropped from $78.4 billion to $66.3 billion. On the other hand, USDC’s market cap has registered a 70% year-over-year growth. It rose from $42.2 billion to $55 billion in 2022.
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