End of September, Tether made headlines when a judge ordered the company to reveal what is likely to be crucial documentation for any evaluation of USDT’s support with US dollars.

The court found that the evidence was necessary to establish that Tether had a treasury that fully supports its stablecoin. This time, unsolicited by the courts, Tether made a major ruling about the kind of assets that would no longer be used as a backup for its stablecoin.

Tether announced that all her commercial paper holdings had been liquidated. In light of this important milestone, the stablecoin announced on its blog that it would invest exclusively in US Treasury bills.

A gradual liquidation

Company-issued commercial paper is a form of short-term, unsecured debt. At the end of May, the company’s commercial paper was worth $20.1 billion.

That had fallen to $8.5 billion by the end of June. According to this announcement, the company is on track to have no outstanding commercial paper by the end of the year, as it had done before stated:.

Because you don’t have to worry about commercial paper, the USDT is safer and the risk of volatility is largely mitigated.

Source: Tether.to

Reactions to the news were divided on Tether’s Twitter page. This change makes USDT more secure in the eyes of some by reducing its vulnerability. Some have argued that USDT’s lack of dollar reserve makes it more volatile than competing stablecoins.

USDT still dominates

With a market cap of more than $65 billion, USDT was the largest stablecoin, according to data from Coinmarketcap.

Except for Bitcoin and Ethereum, it ranked third among all cryptocurrencies in terms of market cap and dominance. Also remarkable The trading volume was over 65 billion with an increase of more than 80% in the last 24 hours.

More than 18,000 were seen in the network growth indicator. While it wasn’t as high as the 26,000 seen in May, it was still a sign of growth in new users.

Source: Santiment

According to reports in September, members of Congress in the United States considered a bill that would impose a two-year moratorium on the creation of new algorithmic stablecoins.

The creation or distribution of additional “endogenously collateralized stablecoins” would be illegal under the proposed legislation.

What next for USDT and stablecoins?

Widespread speculation has it that if the United States were to launch its own central bank digital currency (CBDC), it would threaten the market supremacy of dollar-backed stablecoins like USDT.

While the development of CBDCs is inevitable, they will have different functions than stablecoins. We can instead observe a symbiotic relationship between the two customs.



This post Tether’s latest update could positively impact USDT

was published first on https://ambcrypto.com/tethers-latest-update-could-impact-usdt-in-a-positive-way/

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