The stablecoin USDT, which boasts a 1:1 peg to the dollar, was created by Tether.
Tether must publish quarterly reports on its reserves as per a February 2021 settlement with the New York State Attorney General.
The report revealed that Tether has around 50% of its reserves backed by commercial papers, which are regarded as high-risk assets.
In September 2021, Tether started cutting its commercial paper.
Cryptocurrency known as stablecoins are those whose value is fixed to that of an underlying asset, such as the U.S. dollar.
Compared to commercial paper, Treasury notes are thought to be more reliable.