evergrande tether commercial paper

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. 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. 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. 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. Tether has vehemently dismissed the claims and has stated it maintains the full value of the reserves backing its stablecoin supply. Stanley will arrange a new seating arrangement sporadically. Decentral Media, Inc. is not an investment advisor. "There is an entire world outside of the US," Ardoino said. 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. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. How China's Property Market Could Trigger a Crypto Crash 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 does not hold any commercial paper or other debt or securities issued by Evergrande and has never done so, the company said. Understanding the magnitude of size and growth of USDT, bitcoin and Chinese commercial paper may help give some perspective to the latest headlines. A week after its stablecoin briefly lost its 1:1 peg with the U.S. Dollar, Tether's Q1 2022 assurance report shows it has reduced the commercial paper in its USDT reserves by 16.8%.. As of March 31, Tether 's $82 billion reserves were 86% cash and cash equivalents, the rest includes $4 billion in corporate bonds, $3 billion secured loans, and $5 billion other investments like cryptocurrencies . But since it's unsecured, there is also very little recourse for investors if an issuer does default. We are completely confident.". Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Evergrande and China's Looming Risk to Tether - CoinDesk Tether Claims to Hold no Commercial Paper From Struggling Evergrande Among other signs of serious mismanagement, customers have made large deposits on Evergrande apartments that were never built. Evergrande, Chinas second-largest property developer by sales, recently warned that it was in danger of defaulting on massive debts. CNBC's Jim Cramer said Monday investors should take profits in their crypto holdings. With Tether we are welcoming all that. 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. Evergrande has now had to suspend trading of that units onshore corporate bonds following a downgrade, another red flag pointing towards an impending default. Stablecoin Tether says holds no Evergrande commercial paper In a series of tweets about the Evergrande news, partner at Cinnemhian Ventures Adam Cochran, said that IF either Tether or USDC did meltdown in a global collapse though, itd actually be bullish for crypto, as if you couldnt use them to cash out, people would just start bulk converting them into BTC/ETH regardless of price., Cochran added that, despite not being a well-known name in the West, the failure of Evergrande could have massive fallout. Tether Reports 17% Decrease in Commercial Paper | Alexandria You can subscribe to get the full newsletter here. Sign up for Crypto for Advisors, our weekly newsletter defining crypto, digital assets and the future of finance. In absolute terms, the sizes look something like this: A chart like the one above doesnt give a sense of the rate of growth for each, but this does: Bitcoin and USDT look somewhat related, but does one move as a function of the other? "I know the crypto-lovers never want to hear me say sell, but if you've got a big gain as I did, well, I'm begging you to," the "Mad Money" host said. Get the latest business insights from Dun & Bradstreet. 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, Bitcoin and Chinese Commercial Paper at Scale Webinars Indices Markets Finance Technology Web3 Policy Sponsored Content Upcoming event Yuga Labs, Google and More TV & Videos TV & Videos. Tether says it doesn't hold any commercial paper issued by Evergrande The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. The systematic suppression that characterizes Chinese markets adds an opaque but potentially huge risk for the holders of any Chinese asset even if that risk is wrapped up in a supposed stablecoin. 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 . The. We use cookies to improve your experience. CoinDesk journalists are not allowed to purchase stock outright in DCG. var rnd = window.rnd || Math.floor(Math.random()*10e6); However, Tether is very secretive about its holdings, only disclosing that it does hold international commercial paper. JPMorgans analysts said the large commercial paper holdings may suggest that Tether is struggling to find a bank willing to take its cash as a deposit. var pid588602 = window.pid588602 || rnd; Which countries have embraced a 4-day workweek and hows it going. Learn more about Consensus 2023, CoinDesks longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. This license does not include nor permit your resale or commercial use of the Site or its contents. Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28. 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. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. 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'; 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. Thus, it has grown 19-fold in a matter of two dozen months. Work - Tether Data is a real-time snapshot *Data is delayed at least 15 minutes. But the relatively staid coins are making up a growing proportion of the overall market, with a value of around $127 billion. 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. According to the Financial Times, this makes Tether one of the world's largest investors in the US commercial paper market. According to Bloomberg BW, stablecoin issuer Tether has extended billions of dollars in loans to Chinese companies. That type of heavy-handed control is at the core of Chinas conundrum as an authoritarian state trying to reap the rewards of capitalism. 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. That marks a significant decrease in commercial paper, from $24 billion to $20 billion in the first quarter of 2022. Is Evergrande's Fall Influencing the Depeg Issue for Tether? The industry leader for online information for tax, accounting and finance professionals. First Mover The latest moves in crypto markets, in context. 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. Tether Denies Holding Commercial Paper Issued by Troubled - NXTmine The transformation of value in the digital age. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Tether's Paolo Ardoino on Reserves, Regulation and Evergrande Evergrande's main unit had 205.7 billion yuan ($32 billion) worth of commercial paper at the end of 2020, filings show. Tether is completely unbacked USD that gives these exchanges the liquidity they need to market make derivatives that have non-linear . The developer on Thursday applied to suspend trading of that unit's. 2023 CNBC LLC. Commercial paper typically has low default rates. In addition to being a major real estate developer, Evergrande is also China's largest issuer of commercial paper (very short-term corporate bonds). Its flagship unit, Evergrande Real Estate Group, had 205.7 billion yuan ($32 billion) worth of commercial paper at the end of 2020,. "Tether said they have no Evergrande exposure," Cramer acknowledged. 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. Polygon (MATIC) Price Dropped 9% in One Day so Wheres It Headed Next? Tether said that it funnelled roughly half its reserves into commercial paper. We use 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. Stablecoin Tether clarified that while they do hold commercial paper, none of it is from Evergrande. The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. There is a chance that were currently staring down the barrel of the next financial meltdown.. ; ; Vergleich; ; ; ; Tether grants you a limited license to access and make personal use of the Site. Evergrande, China's second-largest property developer, is to blame. The struggling real estate giant has listed $300 billion in total liabilities and says it needs to find funds quickly. As demand for tether grew, market participants started to question whether that was the case. Well, think of a detective in a movie who takes a corkboard, some photos and a lot of white strings to put all the parts of a story together. The developer on Thursday applied to suspend trading of that units onshore corporate bonds following a downgrade, which market participants said indicated an increasing likelihood of defaults and restructuring. It seems increasingly likely that Evergrande is fated instead for the glue factory. Tether's commercial paper disclosure places it among global giants Markets cant function without transparent information flows, full stop. It expanded by borrowing aggressively, including during periods when Chinas economic outlook was seen in much rosier terms globally than it is now. 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. analyse how our Sites are used. 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. Crypto investors need to be alert while the Evergrande situation unfolds even if they don't personally own tether because the stablecoin is used to purchase bitcoin and ether, Cramer said. This was later repaid by Bitfinex. No, I think this theory is baloney. Siddharth Venkataramakrishnan and Joe Rennison. Tether Claims to Hold no Commercial Paper From Struggling Evergrande We want to hear from you. As one of the first stablecoins, Tether's experienced its fair share of controversies, particularly surrounding the reserves that back its eponymous coin. "An industry is not an industry if there is only one player, instead having many players with different offerings with different use cases is really helpful in a moment when you have to talk with the regulator," Ardoino said. "We are always working with regulators and we are expecting additional or proper regulations coming in the next few months, to one year," Ardoino said. Just two years ago, USDTs market cap was a mere $4 billion. "The problem with tether is that it's backed by various holdings and roughly half of those are commercial paper short-term loans and much of that is believed to be, but we don't know, Chinese commercial paper," Cramer said. Evergrande has now had to suspend trading of. The struggling real estate giant has listed $300 billion in total liabilities and says it needs to find funds quickly. 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. "So if you own crypto in any form and you've got big gains, I recommend taking something off the table.". 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. The outlet estimated that the actual figure could be even higher, since it has other units, which also issue commercial paper. The most recent attestation states the average credit rating of its commercial paper holdings is "A-1" - an. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities. 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. 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. Which countries have banned TikTok, and why? Many stablecoin companies have followed Tether's lead both with attestation and the use of commercial paper. 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. 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. Tether Denies Holding Commercial Paper Issued by Troubled Real Estate 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.

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