Definition ∞ Commercial papers are unsecured, short-term debt instruments issued by large corporations to satisfy their immediate financial requirements. These instruments serve as a common method for companies to acquire working capital directly from the money market. Their intrinsic value depends significantly on the issuer’s creditworthiness and short-term financial stability. In traditional finance, they represent a liquid asset class with defined maturity dates.
Context ∞ In crypto news, commercial papers gained prominence due to their inclusion within the reserve portfolios of certain stablecoins. Concerns arose regarding the liquidity and credit quality of these specific holdings, particularly during periods of market stress or economic uncertainty. Regulators are increasingly scrutinizing stablecoin reserve compositions, advocating for a preference towards highly liquid, low-risk assets over less transparent commercial paper holdings to safeguard investor interests and market stability.
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