Paolo Ardoino, CTO of Tether and Bitfinex, provided an update on the condition of USDT reserves during a Twitter Spaces discussion on Thursday. Mr. Ardoino claims that the majority of Tether’s reserves are now in US Treasuries, after the company cut its exposure to commercial paper over the last six months.

Tether (USDT) had been decoupled from the $1(R16.22) mark.

Tether’s reserves were updated against the backdrop of USDT depegging, as crypto-traders and users worried as UST depegged and LUNA experienced extreme inflation. USDT was trading as low as $0.95(R15.41) at the height of Tether’s depegging, but the stablecoin has now returned to $0.9988(R16.20), which is very near to the $1(R16.22) threshold.

Tether has reduced its commercial paper holdings in favor of US Treasuries for its reserves, resulting in a 14 USDT depegging in the last 48 hours.

Tether Issues a Statement Outlining How USDT Has Survived Other Black Swan Events

The depegging of Tether and the subsequent market anxiety over the future of USDT prompted the company’s staff to issue a statement to calm market concerns. It was ‘business as usual [for USDT] amid some predicted market panic following this week’s market swings,’ they stated:

Tether has maintained its stability through multiple black swan events and highly volatile market conditions and even in its darkest days Tether has never once failed to honour a redemption request from any of its verified customers. Tether will continue to do so which has always been its practice.

Tether is the most liquid stablecoin in the market, backed by a strong, conservative portfolio that consists of cash & cash equivalents, such as short-term treasury bills, money market funds, and commercial paper holdings from A-2 and above rated issuers.