Stablecoin Issuer Tether Has No Exposure To Genesis Global or Gemini Earn

  • The broader crypto market experience the shockwaves of the FTX debacle.

  • Stable issuer Circle recently announced that it has zero exposure to Genesis Global.

  • Genesis Global suspended withdrawals on Wednesday due to the FTX fallout.

17 Nov 2022 By: Sudeep Saxena
Stablecoin Issuer Te

Following the announcement that Genesis Global and the Gemini exchange were suspending withdrawals, Tether published a brief statement on Nov. 16 stating that it had no exposure to institutional crypto lender Genesis Global or the Gemini Earn program

Genesis Global is the interest-bearing Gemini Earn's lending partner.

Eager to distinguish itself from other crypto organizations affected by the outbreak, Tether stated:

“It is critical at this time to emphasize that Tether's reserves have shown to be tried and tested, displaying constant resilience during the market's black swan events this year.”

Tether, the operator of USDT — the largest stablecoin and the third-largest digital currency by market cap — briefly lost its dollar peg on May 12, at the beginning of the crypto market crisis.

Tether stated that the Nov. 16 release was part of the company's continuous efforts to promote openness. Tether has resisted efforts to force it to verify the backing of its stablecoin, losing a case initiated by the New York Attorney General's Office in 2019 to divulge such information in February. 

As part of the settlement of that dispute, Tether hired BDO Italia to conduct monthly evaluations and attestations of its reserves for public disclosure in July.

Throughout the year, the stablecoin has made its drawdown in commercial paper reserves to zero quite public.

On Nov. 16, Genesis Global declared via Twitter that it was temporarily stopping redemptions and new loans due to "market instability" caused by FTX's collapse. Following Genesis Global's announcement, Gemini revealed that it will be unable to honor client redemptions for the next five days.

The collapse of the FTX exchange has caused new waves of turmoil in the crypto markets, which may last for months.

Read also: Sam Bankman-Fried reveals FTX post-bankruptcy situation