Stablecoin issuer, Tether said on Wednesday that it had no exposure to Genesis or the Gemini Earn program, which have halted withdrawals.
After it was announced that Genesis Global and the Gemini exchange were restricting withdrawals, Tether published a brief statement on Nov. 16 stating that it has no exposure to institutional crypto lender Genesis Global or the Gemini Earn program. Interest-bearing Gemini Earn’s loan partner is Genesis Global. 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.”
On May 12, at the start of the crypto market collapse, Tether, the company behind USDT (USDT $1.00), the largest stablecoin and third-largest digital currency by market capitalization, temporarily lost its dollar peg.
The revelation on November 16 was “part of Tether’s ongoing efforts to promote openness,” according to Tether. Tether has fought calls for it to demonstrate the stability of its stablecoin, and it lost a case launched by the Office of the New York Attorney General to make that information public in February. As part of the agreement to resolve that lawsuit, Tether hired BDO Italia in July to carry out monthly evaluations and attestations of its reserves for public publication.
The stablecoin has been pretty open about reducing the amount of commercial paper in its reserves to zero during the year. On November 16, Genesis Global tweeted that it was temporarily halting redemptions and new loans owing to the “market instability” brought on by FTX’s demise.
Gemini declared that it will be unable to fulfill client redemption requests for five days following Genesis Global’s declaration. The collapse of the FTX exchange has caused fresh waves of unrest in the cryptocurrency markets, which might last for months.