evergrande tether commercial paper

Is the Evergrande crisis pushing Bitcoin, Tether markets on - AMBCrypto Your Use of the Site. Decentral Media, Inc. is not an investment advisor. 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. But the firm has not clarified the exact details of its debtors. It is now the third-largest cryptocurrency by market capitalisation, according to CoinMarketCap, making up the bulk of stablecoin volume. The developer on Thursday applied to suspend trading of that unit's. About half of Tether's roughly $75 billion in assets, which back USDT, is in commercial paper. 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.. Though its main product since its founding in the 1990s has been housing, Evergrande has grown into a huge conglomerate with products ranging from bottled water to electric cars to a soccer team. "The case is you have two choices, you trust the rating agencies, or you don't trust them. Evergrande's main unit had 205.7 billion yuan ($32 billion) worth of commercial paper at the end of 2020, filings show. Evergrande, Chinas second-largest property developer by sales, recently warned that it was in danger of defaulting on massive debts. Is Evergrande's Fall Influencing the Depeg Issue for Tether? Commercial paper is a form of unsecured, short-term debt issued by companies that doesn't need to be registered with the Securities and Exchange Commission (SEC) as long as it matures before nine months. In addition to being a major real estate developer, Evergrande is also China's largest issuer of commercial paper (very short-term corporate bonds). The report investigated the quality of assets backing USDT, and alleged the debt assets supporting Tether dollar reserves may of questionable nature. It is also alleged that Tether also owns commercial paper issued by Evergrande, China's second-largest real estate developer, which is itself experiencing a major liquidity crisis. Cramer says take crypto profits, cites Evergrande-related tether - CNBC Tether Denies Holding Commercial Paper Issued by Troubled Real Estate Tether is a typical design firm that will value the client's needs over their employees. Ardoino wouldn't comment on whether the Treasury directly spoke to Tether for the report. Who to fire? A report from the end of 2020 shows that Evergrande has just around 10% of the money owed. Stablecoins are rarely on the tips of investors' tongues when it comes to talking about the volatility-filled headline-grabbing crypto market. madcap@cnbc.com. Evergrande, Chinas second-largest property developer by sales, recently warned that it was in danger of defaulting on massive debts. USDT is designed to be pegged to U.S. dollar at a 1:1 ratio, thereby making it possible to trade crypto assets without relying on traditional banking services by providing a stable unit of account. Its been going on for a long time one analyst who warned about Evergrandes practices as early as 2012 was temporarily banned from Hong Kong markets by regulators for his reckless claims. The. For critics of Tether, the new economy of digital assets is based on the worlds oldest profession: real estate speculation. You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. 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. The stablecoin issuer Tether this week declared that it doesnt hold short-term debt issued by troubled Chinese real estate developer Evergrande. Another 18 per cent is held in fiduciary deposits, more than 12 per cent in secured loans and nearly 10 per cent in corporate bonds, funds and precious metals. "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 said Monday investors should take profits in their crypto holdings. Head to consensus.coindesk.com to register and buy your pass now. But these have frequently raised more questions than answers. At the end of 2020, it had $32 billion worth of commercial paper. and other data for a number of reasons, such as keeping FT Sites reliable and secure, Tether is the third-largest cryptocurrency by market value, trailing only ether and bitcoin, which are second and first, respectively. Evergrande has now had to suspend trading of that units onshore corporate bonds following a downgrade, another red flag pointing towards an impending default. 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. I think one time, Stanley mentioned when he saw employees on downtime he . Contact - Tether This license does not include nor permit your resale or commercial use of the Site or its contents. 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. ", Regulators are starting to pay greater attention to stablecoins - digital tokens which are pegged in value to other assets, often the U.S. dollar, and backed by a pool of assets - and some observers have raised concerns about the tokens' liquidity in a time of stress. What should a secular society really look like? Tether is completely unbacked USD that gives these exchanges the liquidity they need to market make derivatives that have non-linear . Elon Musks Twitter is dying a slow and tedious death. Tether published its first Reserves Breakdown in March 2021. Just two years ago, USDTs market cap was a mere $4 billion. 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 and China's Looming Risk to Tether - CoinDesk Stablecoin Tether says holds no Evergrande commercial paper - Yahoo! 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. Stablecoin Tether says holds no Evergrande commercial paper In fact, Tether claimed earlier in the year that 50% of its reserves come from commercial paper. It goes something like this: About half of all bitcoin trades against stablecoin tether (USDT), according to data from CryptoCompare. 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. 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. 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. By signing up, you will receive emails about CoinDesk products and you agree to ourterms & conditionsandprivacy policy. He also said that Tether did not hold any commercial paper issued by cryptocurrency exchanges or affiliated entities. The transformation of value in the digital age. 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. Explainer: How China Evergrande's debt troubles pose a - Reuters Tethers are today, and have always been, fully backed by assets sufficient to cover the amount of tethers in circulation, Hoegner said of its latest disclosure. 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. "Tether does not hold any commercial paper or other debt or securities issued by Evergrande and has never done so," the company said. The value of loans backing Tether's stablecoin reserves could be a risk factor for the crypto industry. Evergrande is trying to find a way to cut costs and sell off some of its assets to dig its way out. He takes the lead in the majority of the company's communications, while the CEO and CFO stay firmly in the background. He also shares his expectations on stablecoin regulation and competition. 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. Tether's USDT remains the dominant stablecoin in the market despite the FUD surrounding the coin. Evergrande's main unit had 205.7 billion yuan ($32 billion) worth of commercial paper at the end of 2020, filings show. Evergrande's main unit had 205.7 billion yuan ($32 billion) worth of commercial paper at the end of 2020, filings show. 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. Balancing Innovation and Regulation: Why a Risk-Based Approach to Crypto Could Benefit America, Crypto Price Predictions, March 2023: Altcoins Are About to Take a Wild Turn, Top 10 Telegram Channels for Crypto Signals in 2023, Binance Accused of Malpractices Similar to FTX, Navigating Crypto Taxes Made Easy & Cheap: Meet Cryptiony. This comes as the Evergrande debt crisis and rival stablecoins shine a spotlight on Tether's reserves again. Even the chance to speak to Ardoino is rare. But tether's growth of around 3,350% since early 2019 is seen as reason to celebrate. 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. Evergrande's main unit had 205.7 billion yuan ($32 billion) worth of commercial paper at the end of 2020, filings show. Tether says it doesn't hold any commercial paper issued by Evergrande 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. Tether grants you a limited license to access and make personal use of the Site. The downgrade notice was sent to Evergrande on Sept. 15 from China Chengxin International. Well send you a myFT Daily Digest email rounding up the latest Cryptocurrencies news every morning. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. Markets cant function without transparent information flows, full stop. Stanley will arrange a new seating arrangement sporadically. Questions for Cramer? Such holdings of companies short-term debt would make it the seventh largest in the world. How the biggest companies plan mass lay-offs, The benefits of revealing neurodiversity in the workplace, Tim Peake: I do not see us having a problem getting to Mars, Michelle Yeoh: Finally we are being seen, Our ski trip made me question my life choices, Apocalypse then: lessons from history in tackling climate shocks, Stablecoins: bitcoin for squares has its own downsides. CoinDesk journalists are not allowed to purchase stock outright in DCG. 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. Our Standards: The Thomson Reuters Trust Principles. We do not give personalized investment advice or other financial advice. Stablecoin Tether says holds no Evergrande commercial paper - Yahoo! News and analysis for the professional investor. 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. "The vast majority of the commercial paper held by Tether is in A-2 and above rated issuers.". 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. HONG KONG (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, as regulatory scrutiny into risks from this type of token grow. Lawrence Lewitinn is CoinDesk's managing editor of global capital markets. Be a smarter, safer investor in eight weeks. According to documents received byBloomberg BusinessWeek, Tether has extended billions of dollars in loans to large Chinese companies. Evergrande is the biggest issuer of commercial papers. "Right now, owning crypto is what's known as a 'crowded' trade and I don't want you to lose money if this space keeps getting hit by Evergrande's contagion worries," he said. 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. In early 2021, Tether paid a fine of $18.5 million to settle a case with the New York Attorney General. Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28. 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. 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And despite it seeming as though the stablecoins are in competition, Ardoino believes this will be key to success with regulators. Stablecoin Tether says it does not hold any commercial paper from Evergrande in recent a statement. 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. In the NYAG investigation, the company was found to be conducting illegal activities in New York. "If tether collapsed, well, then it's going to gut the whole crypto ecosystem," he said. Learn more about Consensus 2023, CoinDesks longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. 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. 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. Ardoino clarified that Tether does not hold Evergrande's commercial paper. Meanwhile, based on data from the Peoples Bank of China, Chinese commercial paper ended Q2 in 2021 at around $900 billion, up from just shy of $700 billion that same quarter in 2019, a gain of less than a third. different direction, choosing to only use cash reserves and cash equivalents, US Treasury is expected to release an in-depth report on stablecoins. "While old information about Tether's reserves and so on is public, it keeps growing," Ardoino said. Another 18 per cent is held in fiduciary deposits, more than 12 per cent in secured loans and nearly 10 per cent. 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. Tether operates a so-called stablecoin, which it says is backed one-for-one by dollar assets. Bitcoin, meanwhile, remained above all-time highs by about 5.5%. Thus, it has grown 19-fold in a matter of two dozen months.

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