NOW WATCH: WATCH: How any business can use live shopping to net thousands of dollars per stream, said every tether coin was fully backed by US dollars in bank accounts. "Tether does not hold any commercial paper or other debt or securities issued by Evergrande and has never done so," the company said. CNBC's Jim Cramer urged investors who have gains in their cryptocurrency portfolios to take some profits, saying Monday he believes digital currencies are likely to face more weakness related to struggling Chinese property developer Evergrande. USDT leads the stablecoin market by trading volume and acts as the top base-pair currency for trading across several large crypto exchanges, including Binance, FTX, and others. Reuters described Evergrande as "the biggest issuer of commercial papers". Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. With Tether we are welcoming all that. Just two years ago, USDTs market cap was a mere $4 billion. The struggling real estate giant has listed $300 billion in total liabilities and says it needs to find funds quickly. All quotes delayed a minimum of 15 minutes. But is it bad? He takes the lead in the majority of the company's communications, while the CEO and CFO stay firmly in the background. Tether published its first Reserves Breakdown in March 2021. The tumble appears to have been triggered by the mounting problems at embattled property giant China. However, as Tethers reserve holdings have been questioned by regulators such as the New York attorney-general in the past, providing banking services to Tether will likely raise reputational risk concerns, wrote the JPMorgan analysts. Lab leak theory: 3 years on, will we ever know where COVID came from? Tether's USDT remains the dominant stablecoin in the market despite the FUD surrounding the coin. As demand for tether grew, market participants started to question whether that was the case. His role is much broader than tech chief. But these are the same rating agencies that are rating the US Treasuries," Ardoino said. The company also denied holding any Evergrande debt and claims to hold only commercial paper issued by A-2 and above-rated companies, which it claims to be risk-free. The latest moves in crypto markets, in context. Call Cramer: 1-800-743-CNBC, Want to take a deep dive into Cramer's world? Thus, it has grown 19-fold in a matter of two dozen months. Evergrande, China's second-largest property developer, is to blame. Understanding the magnitude of size and growth of USDT, bitcoin and Chinese commercial paper may help give some perspective to the latest headlines. The New York attorney-generals office declined to comment on whether Tethers disclosure, which came in the form of a single-page PDF, was sufficient to meet its requirement on reporting as part of Februarys settlement. personalising content and ads, providing social media features and to Tether, the world's largest 'stablecoin', said in a statement it does not hold any commercial paper or securities issued by embattled developer China Evergrande Group, as regulatory scrutiny into risks from this type of token grow. Crypto markets took a dip Thursday just around the time it was reported that Chinas Evergrande Group was on the verge of defaulting on a bond payment. Contact - Tether Which countries have banned TikTok, and why? The developer on Thursday applied to suspend trading of that unit's onshore corporate bonds following a downgrade, which market participants said indicated an increasing likelihood of defaults and restructuring. Even the chance to speak to Ardoino is rare. That should refute anyone who could try to argue USDT may have fueled Chinas boom in commercial paper. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. They are, in theory, backed by reserves, such as short-term government bonds and the currency itself. Tether Denies Holding Commercial Paper Issued by Troubled - NXTmine Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28. The enshittification of apps is real. Tether Claims to Hold no Commercial Paper From Struggling Evergrande A theory that Tether has been buying Evergrande commercial paper and A Division of NBCUniversal. Cramer said his crypto concerns right now begin with tether, a stablecoin that's pegged to the U.S. dollar. By signing up, you will receive emails about CoinDesk product updates, events and marketing and you agree to our, Bankman-Fried Should Have Only Flip Phone, Website Whitelist, DOJ Says, With Congress Impotent, Courts Are the Only Option for Fighting SEC Overreach, Silvergate Closes SEN Platform Institutions Used to Move Money to Crypto Exchanges, Binance.US Is Operating 'Unregistered Securities Exchange,' SEC Official Says, About half of Tethers roughly $75 billion in assets, Tether (the company) said back in September. Tether said that it funnelled roughly half its reserves into commercial paper. Elon Musks Twitter is dying a slow and tedious death. Tether said that it funnelled roughly half its reserves into commercial paper. The stablecoin issuer Tether this week declared that it doesnt hold short-term debt issued by troubled Chinese real estate developer Evergrande. Smart navigation app uses 3D sound to guide blind people. Ardoino joined Tether back in late 2015 as a developer before being appointed chief technology officer around a year later. It is also alleged that Tether also owns commercial paper issued by Evergrande, Chinas second-largest real estate developer, which is itself experiencing a major liquidity crisis. Evergrande is a major property developer in China, and beyond real estate, it has multiple other business units operating in industries such as health-care services and electric vehicles. Today, Bloomberg BusinessWeek reported that stablecoin issuer Tether owns billions of dollars worth of commercial paper issued by large Chinese firms and that it may be using these assets to back up its stablecoin reserves. What does one have to do with the other? That has included harshly curtailing apparently successful fintech firms like Ant Group and, most recently, instituting restrictions on video games, which cant be good for Tencent and other firms. Now onto the crypto context, if you have not guess it already, Tether's USDT that tracks the value of the US dollar is backed by a significant amount of Chinese commercial paper. Tether: hat 50 % der USDT-Reserven in Commercial Paper-Bestnden How the Evergrande Bankruptcy Could Crash Stocks, Crypto Tether has revealed that its commercial paper holdings would be $3.5 billion by July 31. It is now the third-largest cryptocurrency by market capitalisation, according to CoinMarketCap, making up the bulk of stablecoin volume. Siddharth Venkataramakrishnan and Joe Rennison. Before falling into a major crisis, Chinese property developers had issued commercial paper worth 3.6 trillion yuan ($556 billion) in 202020% higher from 2019. The value of loans backing Tether's stablecoin reserves could be a risk factor for the crypto industry. This comes as the Evergrande debt crisis and rival stablecoins shine a spotlight on Tether's reserves again. Well send you a myFT Daily Digest email rounding up the latest Cryptocurrencies news every morning. "Tether does not hold any commercial paper or other debt or securities issued by Evergrande and has never done so," the company said. A commercial paper report from Evergrande at the end of 2021 showed its main unit had $32 billion, just around 10% of its total liabilities. Tether grants you a limited license to access and make personal use of the Site. HONG KONG, Sept 16 (Reuters) - Tether, the world's largest 'stablecoin', said in a statement it does not hold any commercial paper or securities issued by embattled developer China Evergrande Group (3333.HK), as regulatory scrutiny into risks from this type of token grow. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. Evergrande has now had to suspend trading of that units onshore corporate bonds following a downgrade, another red flag pointing towards an impending default. "In the end, this industry is more than $2 trillion and it's important to have clear guidelines and clear rules and so on. Stablecoin Tether clarified that while they do hold commercial paper, none of it is from Evergrande. The developer on Thursday applied to suspend trading of that unit's. promo Be a smarter, safer investor in eight weeks. Analysis: Goldman Sachs faces hard sell for its consumer assets, Ex-Goldman banker Ng deserves 15 years in prison, US prosecutors say, Reporting by Alun John While the embattled housing giant ultimately made its scheduled payment of $148 million, questions persist about the long-term prospects for it and other real estate developers in China. USDT might get blown up by Evergrande and you should know - Publish0x Its flagship unit, Evergrande Real Estate Group, had 205.7 billion yuan ($32 billion) worth of commercial paper at the end of 2020,. Regardless of what commercial paper you hold, bonds and commercial paper would take a hit and some issuers may even fold," tweeted Adam Cochran, partner at Cinneamhain Ventures. Evergrande is trying to find a way to cut costs and sell off some of its assets to dig its way out. Stablecoin Tether says holds no Evergrande commercial paper You can subscribe to get the full newsletter here. Something weird happened today in crypto-world. Tether says it doesn't hold any commercial paper issued by Evergrande The developers debt is spread across an army of banks and other financial institutions, leading some analysts to worry that its collapse would have systemic impacts comparable to the fall of Lehman Brothers, which kicked off the Great Recession 13 years ago. He is also now CTO of cryptocurrency exchange Bitfinex. That type of heavy-handed control is at the core of Chinas conundrum as an authoritarian state trying to reap the rewards of capitalism. Tether says it doesn't hold any commercial paper issued by Evergrande Tether Reports 17% Decrease in Commercial Paper | Alexandria Can it be liquidated to meet redemptions? Concerns intensified after Evergrande admitted in June it did not pay some commercial paper on time, and news in July a Chinese court froze a $20 million bank deposit held by the firm on the . But Stuart Hoegner, Tethers general counsel, said: With respect to reputation, we believe we are seeing the opposite: more and more counterparties are comfortable with Tether and our transparency initiatives and are keen to work with us.. New Tether Report Shows 17% Reduction in Commercial Paper When Tether launched in 2014, it said every tether coin was fully backed by US dollars in bank accounts. The developer on Thursday applied to suspend trading of that unit's onshore corporate bonds following a downgrade, which market participants said indicated an increasing likelihood of defaults and restructuring. The downgrade from A to AA applies both to the bonds and their issuer rating. Stablecoins are rarely on the tips of investors' tongues when it comes to talking about the volatility-filled headline-grabbing crypto market. In fact, Tether claimed earlier in the year that 50% of its reserves come from commercial paper. Since Tether doesnt disclose specifics about the commercial paper that substantially backs its stablecoin, this is a bit like serving a houseguest a sandwich and loudly assuring them that it is absolutely NOT made from diseased horsemeat. First Mover The latest moves in crypto markets, in context. I think one time, Stanley mentioned when he saw employees on downtime he . Please enter your email address. Evergrande, for its part, is the largest commercial paper issuer in China's real estate market, owning some $32 billion worth of commercial paper at the end of last year. Evergrande's main unit had 205.7 billion yuan ($32 billion) worth of commercial paper at the end of 2020, filings show. This stability means they offer an accessible - if boring - entry and exit point to the crypto world. Sign up for The Node, our daily newsletter bringing you the biggest crypto news and ideas. Lawrence Lewitinn is CoinDesk's managing editor of global capital markets. Evergrande's main unit had 205.7 billion yuan ($32 billion) worth of commercial paper at the end of 2020, filings show. But the firm has not clarified the exact details of its debtors. Tether had stated since its launch in 2014 that its tokens were fully backed by US dollars in bank accounts, before pivoting in February 2019 to say that its reserves included traditional currency, cash equivalents and other assets and receivables. The stablecoin issuer says its goal is to reduce its commercial paper holdings to zero. In those two years, bitcoins market cap has gone up eight times, from $159 billion to $1.3 trillion. Tether has vehemently dismissed the claims and has stated it maintains the full value of the reserves backing its stablecoin supply. In a blog post a few days after its reserves report was released, Hoegner said the commercial paper that the company held was purchased through recognised issuance programmes, the vast majority highly rated, and that there were limits on individual issuers and regional exposures. It earned this title after the Chinese government banned the company from issuing longer-term debt. Among other signs of serious mismanagement, customers have made large deposits on Evergrande apartments that were never built. By signing up, you will receive emails about CoinDesk products and you agree to ourterms & conditionsandprivacy policy. What financial advisors need to know about crypto. "There is an entire world outside of the US," Ardoino said. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information. News and analysis for the professional investor. Disclosures from cryptocurrency provider Tether suggest it has become one of the worlds largest investors in the US commercial paper market, rubbing shoulders with the likes of fund managers Vanguard and BlackRock and dwarfing the investments of tech giants like Google and Apple, according to estimates from JPMorgan. Got a confidential news tip? While Tether (the company) said back in September it doesnt hold Evergrande commercial paper, about a month ago Bloomberg BusinessWeek reported Tethers holdings included billions of dollars of short-term loans to large Chinese companies something money-market funds avoid.. Ardoino wouldn't comment on whether the Treasury directly spoke to Tether for the report. Tether has faced scrutiny from authorities and investigators in the past. He holds Bitcoin, Ethereum, and small amounts of other crypto assets. Tether still expects to be the first to secure an external financial statement audit, which it has been exploring since 2017, but it won't necessarily be from one of the Big Four accountants. In May, it provided a breakdown of these reserves, which Tether claims included just under $30bn in commercial paper, a short-dated investment similar to cash. Join our Telegram Group and get trading signals, a free trading course and daily communication with crypto fans! Explainer: How China Evergrande's debt troubles pose a - Reuters This article is excerpted from The Node, CoinDesks daily roundup of the most pivotal stories in blockchain and crypto news. recently accused of violating securities laws. The Chinese real-estate giant is facing down $300 billion in debt that it cant pay back. But since it's unsecured, there is also very little recourse for investors if an issuer does default. As one of the first stablecoins, Tether's experienced its fair share of controversies, particularly surrounding the reserves that back its eponymous coin. madcap@cnbc.com. In fact, $30 billion of the Tethers dollar holdings are invested in commercial paper, which makes one of the largest holders of this debt asset class and puts the firm ahead of some top financial firms. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. Evergrande, which has total liabilities of more than $300 billion, is also in the spotlight as it scrambles to raise funds, teetering between a messy meltdown with far-reaching impacts, a managed collapse or a government bailout. Evergrandes main unit had 205.7 billion yuan ($32 billion) worth of commercial paper at the end of 2020, filings show. 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In total, Tether holds 52% US Treasury bonds, 37% commercial paper, with the remainder in cash and money market funds. Cash made up only 2.9 per cent, according to the companys disclosure.
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