Chinese real estate giant Evergrande has been on the agenda recently due to the financial crises it has experienced. The company is struggling to pay off $ 300 billion in debt.
Concerns that the Evergrande crisis, which grew in China, could have a negative impact on the banking system and markets, also spread to the cryptocurrency markets.
Since Evergrande was in financial trouble, banks and other lending institutions began to refuse to accept its funds. Meanwhile, it was claimed that Tether’s reserves included the securities of this company and that Tether could also be affected by this crisis.
Tether, one of the biggest players in the crypto money markets, made a statement on the matter.
A Tether spokesperson explained that contrary to the allegations, they do not own any commercial paper or securities issued by Evergrande.
In the statement, referring to the report of June 30, 2021, it was stated that “most of the commercial papers that we have as reserve belong to issuers with an A-2 score or higher.”
With a market value of $ 68 billion, $ 30.8 billion of Tether’s reserves are backed by commercial paper. Tether has not disclosed to date which companies have commercial papers.
After this announcement, a new FUD was finished for Teher before it started.