Tether reduces commercial paper holdings by 21% in Q4, nearly doubles T-bill pile

Tether (USDT-USD), the largest stablecoin issuer by total supply, cut its commercial paper holdings by 21% in Q4, and almost doubled its allocation to Treasury bills, according to its latest attestation report. Specifically, Tether (USDT-USD) reduced its assets held in commercial paper - unsecured short-term debt - to $24.2B in December from $30.5B in the period ending September. Note the attestation categorizes commercial paper assets as cash equivalents, and $13.4B of that amount matures within 90 days. Generally Accepted Accounting Principles ("GAAP") defines cash equivalents as investments with maturities of three months or less. It also reduced its cash assets to $4.2B in December from $7.2B in the prior period. On the other hand, the company allocated most of its reserves to Treasury bills - liquid short-term government debt - to $34.5B from $19.4B. Previously, (Feb. 15) U.S. Treasury's Nellie Yang says there's a risk that stablecoins are not backed dollar-for-dollar