Tether says it has no exposure to Genesis Global or Gemini Earn

Published at: Nov. 16, 2022

Tether issued a short statement Nov. 16 saying that it has no exposure to institutional crypto lender Genesis Global or the Gemini Earn program after the announcement that Genesis Global and the Gemini exchange were freezing withdrawals. Genesis Global is the lending partner for interest-bearing Gemini Earn. 

Eager to differentiate itself from contagion-stricken crypto organizations, Tether said:

“It is important at a time like this to highlight that these [Tether’s] reserves have proved tried and true demonstrating consistent resilience during the black swan events that have characterized the market this past year.”

Tether, operator of (USDT), the largest stablecoin and the third largest digital currency by market capitalization, lost its dollar peg for a short while on May 12, at the beginning of the crypto market meltdown.

Tether said that the Nov. 16 announcement was “part of Tether’s ongoing efforts to increase transparency.” Tether has resisted efforts to make it prove the backing of its stablecoin, losing in February a case brought by the Office of the New York Attorney General in 2019 to expose that information. In July, Tether hired BDO Italia to conduct monthly reviews and attestations of its reserves for public release as part of the settlement of that case.

Tether Confirms Zero Exposure To Genesishttps://t.co/KHEx2HWoJ1

— Tether (@Tether_to) November 16, 2022

The stablecoin has made its reduction in commercial paper in its reserves to zero quite public throughout the year.

Related: Tether chief technology officer confirms no plans to rescue FTX

Genesis Global announced by tweet Nov. 16 that it was temporarily suspending redemptions and new loans due to the “market turmoil” arising from the collapse of FTX. Gemini said after Genesis Global’s announcement that it would be unable to meet customer redemptions for five days.

The collapse of the FTX exchange has sent new waves of distress through crypto markets that may continue to be felt for months to come.

Tags
Business
Stablecoin
Related Posts
Canadian bank plans to launch dollar-backed digital currency 'in the coming months'
In an announcement on Wednesday, VersaBank said it plans to launch a digital currency called VCAD, which will reportedly be backed by Canadian dollars deposited with the bank. The Canadian bank claimed that VCAD would effectively be "the first digital currency to represent a fiat currency" issued and backed by a North American bank. VersaBank said it had partnered with Canada Stablecorp, a joint venture between investment fund manager 3iQ and blockchain firm Mavennet, to launch the "stablecoin." The bank plans to make VCAD available to the public “in the coming months” by issuing the digital currency to its “financial …
Business / Feb. 24, 2021
WEF 2022: Blockchain community breaks stereotypes at Davos
On the second day of the Global Blockchain Business Council's (GBBC) Blockchain Central Davos 2022, Cointelegraph’s editor-in-chief Kristina Lucrezia Cornèr moderated a panel discussion focusing on the current direction of the financial industry. Panelists included co-founder and CEO of Soramitsu Makoto Takemiya; fintech expert at Oesterreichische Nationalbank Johannes Duong; and chief operating officer (COO) of theStellar Development Foundation Jason Chlipala. The panel tackled various issues such as educating the mainstream about blockchain, how blockchain companies are breaking stereotypes at the World Economic Forum (WEF) 2022 and current market issues surrounding central bank digital currencies (CBDCs) and stablecoins. The common perception …
Adoption / May 24, 2022
Ideas vs. practice: How are regulators working together on crypto?
The regulation of cryptocurrencies across the world is a constant battle for investors in a rapidly expanding and constantly changing ecosystem. Various regulatory agencies around the world view digital assets in a different light that vary significantly from one another. Recently, executive board member of the European Central Bank (ECB) Fabio Panetta mentioned in a written statement for a speech to Columbia University that regulators should follow a globally coordinated approach while regulating digital assets. He said that the world should have digital assets regulated by the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) rules of the …
Decentralization / May 25, 2022
Distribution of assets is 'not possible at this time', says Luna Foundation Guard
The Luna Foundation Guard, or LFG, a fund focused on the Terra ecosystem, has said it cannot provide a timeline to distribute assets to users following stablecoin TerraUSD depegging from the dollar. In an Oct. 7 Twitter thread, LFG cited “ongoing and threatened litigation” in its reasons for being unable to distribute its remaining assets to UST users starting with the smallest HODLers. The fund’s reserves held more than $4 billion in assets prior to the market downturn in May, an amount that has dropped to roughly $105 million at the time of publication. “Distribution is not possible at this …
Business / Oct. 7, 2022
BitPay to introduce USDC and ETH payments on Polygon network
Major cryptocurrency firm BitPay is expanding the scope of supported blockchain networks, preparing to debut payments in ERC-20 tokens on the Polygon network. BitPay and Polygon jointly announced on Oct. 26 the integration of Polygon on the BitPay app, allowing customers to spend Polygon-bridged ERC-20 tokens. The BitPay app is specifically preparing to support payments in tokens like Polygon-based USD Coin (USDC) later this week. USDC developer Circle originally launched the USDC stablecoin on the Ethereum blockchain, bridging it over to Polygon via the Polygon Bridge in June 2022. Polygon USDC is not the only Polygon-bridged token that is coming …
Blockchain / Oct. 26, 2022