Tether Price(USDT)

Stablecoin issuer Tether has cut its commercial paper holding to less than $50 million, Tether CTO Paolo Ardoino said in a tweet.As of September 30, the company increased its holding of U.S. Treasuries to 58.1% of its total portfolio from 43.5% of its total portfolio as of June 30.Commercial papers are short-term unsecured debt issued by companies, where the value of the papers is dependant on the issuing company. Commerical papers are less stable than other debt instruments, like U.S. government treasuries.Tether had earlier said that it will bring its commercial paper holdings to zero by the end of the year on the back of growing concerns over the stability of its ecosystem and its stablecoin USDT.In May, the company held $20.1 billion of commercial papers, which it reduced to $8.5 billion by June 30.The USDT issuer had also appointed a new auditor BDO Italia to take over its regular attestation reports. Recently, the firm was ordered by a New York-court judge to produce financial records relating to the backing of USDT.

Both the number of active addresses and new addresses for BUSD have increased significantly following the recent auto-conversion announcement, which is indicative of a growing interest in BUSD .According to an on-chain analytics firm, Glassnode, the number of active addresses (7d MA) for BUSD just reached a 1-month high of 96.012 and the number of new Addresses (7d MA) just reached a 3-month high of 26.232.The number of active addresses (7d MA) for BUSD just reached a 1-month high of 96.012.The number of new Addresses (7d MA) just reached a 3-month high of 26.232.

Tether (USDT), a stablecoin meant to be worth a dollar, has found stability for the first time in over two months. The world's largest stablecoin by market value regained its dollar peg on July 20 and has remained steady since then, the first such instance since the collapse of Terra's algorithmic stablecoin TerraUSD or UST (now TerraClassicUSD) in the second week of May. Terra's UST, the-then third largest stablecoin in the world, tanked on May 12, spurring panic selling in other dollar-pegged cryptocurrencies. Tether's peg broke and fell as low as $0.92 on some exchanges following UST's crash and averaged about $0.99 in June. Tether's market capitalization has declined by $16 billion to $65 billion in two months, a sign of large redemptions by holders. This means that the company behind USDT, Tether Ltd, honored billions of dollars worth of redemptions following UST's meltdown. Tether Ltd has long been criticized for the lack of transparency about the nature of assets backing the stablecoin. In other words, tether has passed the market's stress test, withstanding redemptions in volatile conditions and eventually reclaiming the peg. "The past two months have definitely been a stress test for stablecoins following the collapse of UST and sharp contraction in USDT's market cap," Clara Medalie, research director at Kaiko, said. "Tether proved it's ability to process billions in redemptions, despite lingering questions over the makeup of its reserves." It remains to be seen if tether's recent resilience bolsters investor confidence in the stablecoin, and trader and analyst Alex Kruger is still skeptical about the stablecoin's resilience. Tether is heavily used in the bitcoin (BTC) market and decentralized finance (DeFi). "Tether has once again passed the stress test under extreme market conditions," Kruger said. "However, I do not foresee tether FUD to diminish in any significant way until there is stablecoin issuer regulation in place and Tether adheres to it (such regulation does not yet exist)." Tether Ltd has long claimed that the value of its stablecoin is always 100% backed by assets to ensure the stability of the 1:1 dollar peg. In May, Tether Ltd published an attestation of holdings by independent accountants MHA Cayman, which showed the company held $39.2 billion in Treasuries, had $4.1 billion in bank deposits, $6.7 billion in money market funds and $3.1 billion in secured loans. A potential loss of confidence in tether will most likely result in a severe liquidity shock to the broader crypto market, according to JPMorgan (JPM). While tether is supposedly fully collateralized, UST, is an algorithmic stablecoin backed by an endogenous token LUNA, whose value is tied to the stablecoin itself. The setup makes UST and algorithmic stablecoins vulnerable to bank runs, like the one seen in May.