Evergrande… Evergrande's main unit had 205.7 billion yuan ($32 billion) worth of commercial paper at the end of 2020, filings show. The stablecoin issuer Tether this week declared that it doesn’t hold short-term debt issued by troubled Chinese real estate developer Evergrande. HONG KONG : 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 … Adam Cochran, partner at Cinnemhian Ventures, shared his opinion on this news and said that, Google searches for NFTs spike over the Dogecoin,…, Staples Center arena in Los Angeles will be renamed…, U.S. Department of Justice selling crypto worth…, “IF either Tether or USDC did meltdown in a global collapse though, it’d actually be bullish for crypto, as if you couldn’t use them to cash out, people would just start bulk converting them into BTC/ETH regardless of price.”. Since Tether doesn’t 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 … Reddit discussions have also picked up the speculation. Since Tether doesn’t 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 … 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 states its position. Crypto markets took a dip Thursday simply across the time it was reported that China’s Evergrande Group was on the verge of defaulting on a bond cost. According to the company website, Evergrande Real Estate owns more than 1300 projects in over … Perhaps, if one were to measure the rope on a different y-axis like so: Maybe tail wagging the dog. About half of Tether’s roughly $75 billion in assets, which back USDT, is in commercial paper. Needless to say, cryptocurrency investors … Tether and other stablecoins claim to own short-term debt represented by commercial paper. Wyckoff, Sandstorm reports major permitting milestone for Hod Maden gold project in Turkey, Gold production in South Africa to eclipse 4Moz per year by 2025 - report, Copper miner KGHM boosts net income fourfold in 9M 2021 on strong production and higher commodity prices, Fed's Waller says stablecoins do not need to be subject to full banking rulebook, Growth, jobs and inflation clash in Biden Fed choice, Wednesday's Charts for Gold, Silver and Platinum and Palladium, Nov. 17, Where are the stops? What is Trading? Tether has denied holding any Evergrande debt, but its lawyer declines to say whether Tether had other Chinese commercial paper. Reason #1 - First, Tether currently has $30B in commercial papers, and that’s an insane amount of money. Cramer says take crypto profits, cites Evergrande-related tether risks. Since Tether doesn’t 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. How to Earn Bitcoin From Trading? But it seems that Company is now under huge problem and may lose everything. Reporting by Alun John; Editing by Mark Potter, Analytical Charts - Jim You can subscribe to get full Newsletter here. That should disprove anyone who could argue that USDT may have fueled China’s boom in commercial paper. 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But the team at Tether has been very tight-lipped about the origin of the commercial paper. Tether and Commercial Paper Loans. Evergrande, which has total liabilities of more than $300 billion, is also in the spotlight as it scrambles to raise funds, teetering between a … 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. Cash-strapped China Evergrande Group, facing a deadline for coupon payments on Wednesday, may have made those payments, according to a report by Bloomberg, which said that customers of international clearing firm Clearstream have received overdue payments on three U.S. dollar bonds. So we are all living in a very large global “house of cards” with hard to fathom inter-dependencies (e.g. Whether you believe them or not is another story as they don’t really release monthly audits like other stablecoins do. Required fields are marked *. Approximately half of Tether's $62.8 billion assets as of the end of June 2021, were backed by commercial paper and certificates of deposit, according to the company. Evergrande is roughly $305 billion in debt - for comparison, Lehman Brothers had around $619 billion of liabilities and its fall triggered 2008 financial crisis. While this company showed big success through its success in raising around $8 billion by August. So while Evergrande may not be on the books, the concern is that commercial paper may be from other real estate companies. Tether is … Tether has denied holding any evergrande debt, but its lawyer declined to say whether Tether holds any other Chinese commercial paper, saying only that the vast majority of Tether's commercial paper is highly rated by credit-rating firms. Right now this company is facing a big problem and also warned that the firm is in danger of defaulting on massive debts. The stablecoin issuer Tether this week declared that it doesn’t hold short-term debt issued by troubled Chinese real estate developer Evergrande.Since Tether doesn’t 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 … Ardoino clarified that Tether does not hold Evergrande’s commercial paper. Cryptocurrency markets tumbled Thursday around the time it was reported that China’s Evergrande Group was on the verge of a bond default. Evergrande is the biggest property developer firm in China by sales. Chinese real estate developers are some of the world’s biggest issuers of commercial paper. 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. November 15, ... “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. Well, think of a detective in a movie who takes a cork board, some photos, and lots of white strings to piece all the pieces of the story together. 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 … Tether issued a statement in mid-September to say it did not hold any commercial paper related to Evergrande. Bloomberg reports Tether does hold billions of dollars of short-term loans to large Chinese companies, but was not able to confirm whether Evergrande was among these companies. Evergrande default fears have rise, and the tweet below captures the speculation connecting the two entities. The strange thing is that, at least for now, most participants in the crypto market, including some very large and sophisticated operators, don’t seem to care about any of the risks. Or maybe there are other ways to explain things. 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. But the popular stablecoin has … Tether said that it funnelled roughly half its reserves into commercial paper. Black [email protected] Wrote: (10-21-2021 03:55 PM) How does evergreen going to crap = crash in your mind First of all this is history's greatest bubble, it will correct in time that or they'll destroy all currencies then everything becomes worthless. Thus, it has multiplied 19 times in twenty months. The company behind the stablecoin Tether has stated that it does not have any Evergrande commercial paper (which are like short-term loans), but it has commercial paper in other Chinese companies. But Tether clearly explained his position on this matter and stated, “Tether does not hold any commercial paper or other debt or securities issued by Evergrande and has never done so. In-depth theory, https://www.youtube.com/watch?v=5Uh720poZ8w. Amid the concerns over the future of Chinese property giant Evergrande, Tether announced it does not hold any commercial paper issued by the developer. 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. For critics of Tether, the new economy of digital assets is based on the world’s oldest profession: real estate speculation. Tether denied holding any debt at embattled Chinese property development company Evergrande. 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. Tether, Bitcoin and Chinese commercial paper on a large scale For critics of Tether, the new economy of digital assets is based on the world’s oldest profession: real estate speculation. This isn’t a problem if the Chinese property market continues growing at the pace it has been. About half of Tether’s roughly $75 billion of assets, which back USDT, are in commercial paper. China Evergrande cranes dominate the skylines of many Chinese cities. 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. "Tether does not hold any commercial paper or other debt or securities issued by Evergrande and has never done so," the company said. According to the reports, which are available commercially for Evergrande, claims that the company holds around $32 million of funds and this is only 10% of the debut that company is facing. Commercial paper is a type of short-term debt that companies issue, usually considered ultra … "The vast majority of the commercial paper held by Tether is in A-2 and above rated issuers.". However, Tether has denied that it holds any commercial paper from Evergrande, though it may be exposed to Chinese companies. Approximately half of Tether's $62.8 billion assets as of the end of June 2021, were backed by commercial paper and certificates of deposit, according to the company. 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 , as regulatory scrutiny into risks from this type of token grow.. Evergrande, which has total liabilities of more than $300 billion, is also in the spotlight as it … Evergrande, for its part, is the largest commercial paper issuer in China’s real estate market, owning some $32 billion worth of commercial paper … In an interview, stablecoin Tether's tech chief Paolo Ardoino lays out the case for holding commercial paper in its reserves. “Tether does not hold any commercial paper or other debt or securities issued by Evergrande and has never done so,” said a spokesperson for Tether. Tether, Bitcoin and Chinese commercial paper on a large scale For critics of Tether, the new economy of digital assets is based on the world’s oldest profession: real estate speculation. 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"The problem with tether is that it's backed by various holdings and roughly half of those are commercial paper — short-term loans — and … Bitcoinik - Next Generation Bitcoin Media, What is USDC Savings Account and How Does it Work, Best Bitcoin Faucets To Earn Free Bitcoin. Related: Record-high inflation prompts investors to take a closer look at Bitcoin. Rather, it explained that it has not ever done such. Wyckoff, Where Are the Stops - Jim 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. Then instantly sell it for DAI or Gemini Stablecoin and cash out your 100 mil. Bloomberg reports Tether does hold billions of dollars of short-term loans to large Chinese companies, but was not able to confirm whether Evergrande was among these companies. According to a spokesperson from Tether, “Tether does not hold any commercial paper or other debt or securities issued by Evergrande and has never done so. The stablecoin issuer Tether this week declared that it doesn’t hold short-term debt issued by troubled Chinese real estate developer Evergrande. September 16, 2021. in Stablecoin. There is a very decent probability that Tether has become one of the biggest property developers by buying their short-term commercial paper debt. The stablecoin issuer Tether this week declared that it doesn’t hold short-term debt issued by troubled Chinese real estate developer Evergrande. In absolute terms, the sizes look like this: A graph like the one above doesn’t give a sense of the growth rate for both, but this does: Bitcoin and USDT seem somewhat related, but does one move as a function of the other? However, Tether is very secretive about its holdings, only disclosing that it does hold international commercial paper. Evergrande's main unit had 205.7 billion yuan ($32 billion) worth of commercial paper … Meanwhile, bitcoin remained above all-time highs by about 5.5%. Crypto markets took a dip Thursday just around the time it was reported that China’s Evergrande Group was on the verge of defaulting on a bond payment. This is enough for Financial Times to place Tether among “global giants” in that category. A commercial paper is a corporate bond with a short expiration date, usually less than a year. For critics of Tether, the brand new financial system of digital belongings relies on the world’s oldest career: actual property hypothesis. 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.” These questions can only be answered with more transparency from the issuer of the stablecoin. The lawyer did however, reassure Faux that the majority of Tether’s commercial paper holds high ratings from credit rating agencies. ... Evergrande. In fact, Tether claimed earlier in the year that 50% of its reserves come from commercial paper. 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 states its position. Evergrande, China’s second-largest property developer by sales, recently warned that it was in danger of defaulting on massive debts. Whereas the embattled housing big finally made its scheduled payment of $148 million, … You then take that 100 million USDT and buy BTC. “Tether does not hold any commercial paper or other debt or securities issued by Evergrande and has never done so,” a spokesperson for the company said.“The vast majority of the commercial paper held by Tether is in A-2 and above rated issuers.” I go to Tether and say "I'll give you "commercial paper" for my real estate company. Evergrande, the world's most indebted developer which once epitomised a … How much of it is Chinese or specifically from Evergrande is unclear. Cryptocurrency markets tumbled Thursday around the time it was reported that China’s Evergrande Group was on the verge of a bond default. According to a spokesperson from Tether, “Tether does not hold any commercial paper or other debt or securities issued by Evergrande and has never done so. Stablecoin Tether says holds no Evergrande commercial paper. Evergrande's main unit had 205.7 billion yuan ($32 billion) worth of commercial paper … Stablecoin Tether which is intended to provide stability to the cryptocurrency ecosystem has put out a statement saying that it does not hold any commercial paper issued by the troubled Chinese property developer Evergrande. While Tether (the company) said last September that it does not hold Evergrande’s trading papers, about a month ago Bloomberg BusinessWeek reported that Tether’s holdings included “billions of dollars in short-term loans to large Chinese companies — something money market funds avoid.”. Ardoino clarified that Tether does not hold Evergrande’s commercial paper. - This may seem like a conspiracy theory, but there are certain points that line up. Companies that are connected to Evergrande, and if Evergrande falls, it will take everything down with it, including Tether. Your email address will not be published. There is a very decent probability that Tether has become one of the biggest property developers by buying their short-term commercial paper debt. In a sequence that felt like 2008 all over again, Tether … The company develops and manages real estate across China, primarily focussing on residential apartment complexes. Through his tweet, Adam claimed indirectly that USDT and USDC have direct connection and they are backed by Evergrande. jpclegg63 says: July 27, 2021. Approximately half of Tether’s $62.8 billion assets as of the end of June 2021, were backed by commercial paper and certificates of deposit, according to the company. However, Tether is very secretive about its holdings, only disclosing that it does hold international commercial paper. According to a spokesperson from Tether, “Tether does not hold any commercial paper or other debt or securities issued by Evergrande and has never done so. Defenders of Tether could argue that even if one assumes that Tether has spent half of every dollar it is said to have acquired commercial paper in China over the past two years, that would be less than a fifth of new issues and 4% of the market. Approximately half of Tether's $62.8 billion assets as of the end of June 2021, were backed by commercial paper and certificates of deposit, according to the company. Ardoino clarified that Tether does not hold Evergrande’s commercial paper. Now there’s social media speculation that Tether’s reserves have been invested in commercial paper issued by beleaguered China property company Evergrande. (Önder Örtel/Unsplash)Lawrence LewitinnLawrence Lewitinn is CoinDesk's managing editor of global capital markets.Follow @lvlewitinn on TwitterFor critics of Tether, the new economy of digital assets is based on the world’s oldest profession: real estate speculation.Crypto markets took a dip Thursday just around the time it was reported that China’s Evergrande Group was on … Can it be liquidated to face redemptions? 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.”, Read also: Binance wants a Permanent Home for Headquarter, Bitcoin trader & investor since 2013.
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