Tether issued a brief statement on Nov. 16 saying it has no stake in institutional crypto lender Genesis Global or the Gemini Earn program, following 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:
“At a time like this, it is important to highlight these [Tether’s] Reserves have stood the test of time and demonstrated their consistent resilience during the black swan events that have shaped the market over the past year.”
Tether, the operator of USDT (USDT) — the largest stablecoin and third-largest digital currency by market cap — briefly lost its dollar peg on May 12, at the start 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 prove support for its stablecoin, losing a case in February brought by the New York Attorney General’s office in 2019 to disclose this information. In July, Tether commissioned BDO Italia to conduct monthly reviews and certifications of its reserves for publication as part of the settlement of this case.
Tether confirms no exposure to Genesishttps://t.co/KHEx2HWoJ1
— Tether (@Tether_to) November 16, 2022
The stablecoin has made the reduction of commercial paper in its reserves public throughout the year.
Related: Tether Chief Technology Officer confirms no plans to rescue FTX
Genesis Global announced via a tweet on Nov. 16 that it was temporarily suspending redemptions and new lending due to the “market turmoil” resulting from the collapse of FTX. Following Genesis Global’s announcement, Gemini said it would be unable to fulfill customer redemptions for five days.
The collapse of the FTX exchange has sent new waves of distress through the crypto markets that may be felt for months to come.