Among other signs of serious mismanagement, customers have made large deposits on Evergrande apartments that were never built. Ardoino joined Tether back in late 2015 as a developer before being appointed chief technology officer around a year later. Tether grants you a limited license to access and make personal use of the Site. Cramer urges investors to take some crypto profits, citing Evergrande-related risks, struggling Chinese property developer Evergrande, stablecoin that's pegged to the U.S. dollar, third-largest cryptocurrency by market value. The downgrade from A to AA applies both to the bonds and their issuer rating. (Reporting by Alun John; Editing by Mark Potter), Ukraine Latest: Russia Continues Efforts to Encircle Bakhmut, INSIGHT-Before fatal collapse, Turkish building had skirted code thanks to Erdogan policy, In Chicago, adapting electric buses to winters challenges, Ukraine ally Kallas fights for reelection in Estonia vote, Global race to boost electric vehicle range in cold weather. According to documents received byBloomberg BusinessWeek, Tether has extended billions of dollars in loans to large Chinese companies. The industry leader for online information for tax, accounting and finance professionals. According to Reuters, around 50% of Tethers $62.8 billion in held assets at the beginning of July 2021, was backed by commercial paper and certificates of deposit. 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. different direction, choosing to only use cash reserves and cash equivalents, US Treasury is expected to release an in-depth report on stablecoins. And despite it seeming as though the stablecoins are in competition, Ardoino believes this will be key to success with regulators. Lab leak theory: 3 years on, will we ever know where COVID came from? 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. We believe that this is the only way that these technologies are really created and can become mainstream.". The US Office of the Comptroller of the Currency has released guidance saying that banks can take deposits from stablecoin issuers only if the coins are fully backed by reserves. It has tried to quell the heightened concerns expressed by mainstream financial media regarding its dollar reserves. "Tether does not hold any commercial paper or other debt or securities issued by Evergrande and has never done so," the company said. 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 . Evergrande's main unit had 205.7 billion yuan ($32 billion) worth of commercial paper at the end of 2020, filings show. The outlet estimated that the actual figure could be even higher, since it has other units, which also issue commercial paper. With Tether we are welcoming all that. Since Evergrande's potential collapse could have broad implications for the commercial paper market and Tether's most recent attestation contains no breakdown of either the geographical exposure or investment category of the paper it holds, market participants are concerned about the risks to Tether's books. The downgrade notice was sent to Evergrande on Sept. 15 from China Chengxin International. Or perhaps there are other ways to explain things. Approximately half of Tethers $62.8 billion assets as of the end of June 2021, were backed by commercial paper and certificates of deposit, according to the company. The tumble appears to have been triggered by the mounting problems at embattled property giant China. For Ardoino and the team, this highlights the crypto community's faith in Tether. Learn more about Consensus 2023, CoinDesks longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Ardoino wouldn't comment on whether the Treasury directly spoke to Tether for the report. This article is excerpted from The Node, CoinDesks daily roundup of the most pivotal stories in blockchain and crypto news. They are, in theory, backed by reserves, such as short-term government bonds and the currency itself. 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. After a couple of decades of relative freedom for entrepreneurs (including, as mentioned, the apparent freedom to commit securities fraud), Chinese leadership under Xi Jinping has begun to aggressively intervene in markets. That type of heavy-handed control is at the core of Chinas conundrum as an authoritarian state trying to reap the rewards of capitalism. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. For critics of Tether, the new economy of digital assets is based on the worlds oldest profession: real estate speculation. The Evergrande Group is the second-largest property developer in China by sales. As we have indicated in our published statements and in our most recent assurance attestation with a reporting date of June 30, 2021, the vast majority of the commercial paper held by Tether is in . What does one have to do with the other? Tether, the largest stablecoin, is a Hong-Kong based stable currency. 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. We want to hear from you. Markets cant function without transparent information flows, full stop. CoinDesk journalists are not allowed to purchase stock outright in DCG. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Over the past two years, yet another headwind has entered the China mix. He also said that Tether did not hold any commercial paper issued by cryptocurrency exchanges or affiliated entities. "I think that it's a little bit aggressive, or cocky, to ask that everyone in the world use US agencies, or US auditing companies - otherwise it does not matter, or is not fine," he said. Sign up for notifications from Insider! The US Treasury is expected to release an in-depth report on stablecoins any day now. "There is an entire world outside of the US," Ardoino said. In addition to being a major real estate developer, Evergrande is also China's largest issuer of commercial paper (very short-term corporate bonds). Bitcoin, meanwhile, remained above all-time highs by about 5.5%. Sign up for The Node, our daily newsletter bringing you the biggest crypto news and ideas. 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. 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. 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. Evergrande was successful in raising around $8 billion by August, according to a report from Bloomberg, but it is just a drop in the pan compared to what it still owes. Tether has revealed that its commercial paper holdings would be $3.5 billion by July 31. The company has more than $300 billion in total liabilities and recently warned investors it may default on its debts. Evergrande, China's second-largest property developer, is to blame. Tether has vehemently dismissed the claims and has stated it maintains the full value of the reserves backing its stablecoin supply. What should a secular society really look like? That marks a significant decrease in commercial paper, from $24 billion to $20 billion in the first quarter of 2022. var absrc = 'https://servedbyadbutler.com/adserve/;ID=177750;size=0x0;setID=588602;type=js;sw='+screen.width+';sh='+screen.height+';spr='+window.devicePixelRatio+';kw='+abkw+';pid='+pid588602+';place='+(plc588602++)+';rnd='+rnd+';click=CLICK_MACRO_PLACEHOLDER'; Reuters described Evergrande as "the biggest issuer of commercial papers". At the end of 2020, it had $32 billion worth of commercial paper. "The vast majority of the commercial paper held by Tether is . Stay up to date with what you want to know. 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 News and analysis for the professional investor. What financial advisors need to know about crypto. HONGKONG Tether, the worlds 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. Holiday events will take place, but it is silently frowned upon to join in. 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. Consider this - most of the reserve assets Tether holds to support its USDT are commercial papers (CPs) and certificate of deposits (CDs) instead of the US dollar. 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. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. While Tether (the company) said back in September it doesn't hold Evergrande commercial paper, about a month ago Bloomberg BusinessWeek reported Tether's holdings included "billions of. 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. The developer on Thursday applied to suspend trading of that unit's. cookies Kryptowhrungsunterricht/E-Book-Download. personalising content and ads, providing social media features and to 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. 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. Chinese real estate developers are some of the worlds biggest issuers of commercial paper. Stanley will arrange a new seating arrangement sporadically. Tether has faced scrutiny from authorities and investigators in the past. Tethers previous public attestations include various short-term deposits and commercial paper kept as reserves to back the USDT stablecoin. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. It goes something like this: About half of all bitcoin trades against stablecoin tether (USDT), according to data from CryptoCompare. Which countries in the EU are buying the most electric cars? The struggling real estate giant has listed $300 billion in total liabilities and says it needs to find funds quickly. That type of heavy-handed control is at the core of Chinas conundrum as an authoritarian state trying to reap the rewards of capitalism. Siddharth Venkataramakrishnan and Joe Rennison. The biggest crypto news and ideas of the day. A growing swarm of debris in space has led the U.S. government to attempt to set new space hygiene norms, while private companies are also investing in ways to tackle the messy orbital environment. The biggest crypto news and ideas of the day. As we have indicated in our published statements and our most recent assurance attestation with a reporting date of June 30, 2021, the vast majority of the commercial paper held by Tether is in A-2 and above rated issuers.. The information on this website is subject to change without notice. madcap@cnbc.com. He said that the New York attorney-general had no clear findings that customers at any point were at risk of being unable to redeem tethers because of a lack of backing. He is also now CTO of cryptocurrency exchange Bitfinex. 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.. The Node The biggest crypto news and ideas of the day. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. Krypto. Your weekly wrap of Web3 news and trends. Call Cramer: 1-800-743-CNBC, Want to take a deep dive into Cramer's world? By signing up, you will receive emails about CoinDesk products and you agree to ourterms & conditionsandprivacy policy. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. As part of that settlement, Tether received a $18.5 million fine, agreed to no longer operate in New York and pledged to provide quarterly reports on its reserves for the next two years. Now, the second-largest stablecoin, circle (USDC), is heading in a different direction, choosing to only use cash reserves and cash equivalents. As one of the first stablecoins, Tether's experienced its fair share of controversies, particularly surrounding the reserves that back its eponymous coin. Tether is completely unbacked USD that gives these exchanges the liquidity they need to market make derivatives that have non-linear . Stablecoin Tether clarified that while they do hold commercial paper, none of it is from Evergrande. In the NYAG investigation, the company was found to be conducting illegal activities in New York. Cramer said his crypto concerns right now begin with tether, a stablecoin that's pegged to the U.S. dollar. ; ; Vergleich; ; ; ; He also shares his expectations on stablecoin regulation and competition. 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. 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. Analysis-Investors grappling with Evergrande fallout weigh risk of wider pain, This sprinting robot could become your next beach lifeguard, Domino effect as more EU institutions ban TikTok on work devices, TikTok is setting time-limits for teens. The latest moves in crypto markets, in context. The struggling real estate giant has listed $300 billion in total liabilities and says it needs to find funds quickly. Many stablecoin companies have followed Tether's lead both with attestation and the use of commercial paper. The $1.1tn commercial paper market is vital for large companies looking to raise cash for short-term needs such as payroll and inventories. In response to the Bloomberg BW report, it released a blog post claiming that the report is spreading misinformation.. A stock exchange filing added that Evergrande was added to a watch list for possible further downgrades in the future. Tether has been beset by transparency concerns in the past as well. Tether is a typical design firm that will value the client's needs over their employees. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. The "Mad Money" host said the struggles of Chinese developer Evergrande are likely to keep weighing on crypto markets. And it could offer savvy investors the opportunity to hedge against the Tether Bomb an affectionate term for the fact that nobody really From 2018 onwards, new stablecoins have been pouring onto the markets. In November 2018, it had to transfer a substantial portion of its backing to Bitfinex after a loss of funds, meaning that it no longer met its claim of being fully backed by US dollars. 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. analyse how our Sites are used. Cramer stressed he still sees potential for cryptocurrencies to go "mainstream," but believes it's important to lock in at least some gains while they're still there. See here for a complete list of exchanges and delays. 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.

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