Tether claims no more commercial paper in stablecoin reserves

Tether, the largest stablecoin by market cap, claims to have completely purged commercial paper from the reserve assets backing its USDT token, although it still won’t submit to an audit that might prove that claim.

On October 13th, Tether issued a blog post in which the integrity-challenged firm claimed that as of October 12th it had “eliminated commercial paper from its reserves, replacing these investments with U.S. Treasury Bills (T-Bills).” Tether further claimed that “direct exposure” to T-bills “now makes up the majority of Tether’s reserves.”

Commercial paper consists of unsecured promissory notes issued by large corporations seeking to plug short-term financial holes. These IOUs aren’t backed by anything other than the faith that the corporation in question…