Tether Claims to Have Acquired No Commercial Paper From Evergrande‘s Struggle

<p>Tether, the stablecoin, recently said that it does not possess any Evergrande commercial paper. Evergrande, China's second-largest property developer by sales, recently warned that it faced severe debt default. Evergrande is attempting to reduce costs and liquidate some of its assets in order to dig itself out.</p> <p>The beleaguered real estate behemoth has disclosed total liabilities of $300 billion and says it needs to raise capital urgently. There is also the potential of a government bailout. At the end of 2021, Evergrande's commercial paper report revealed that its main unit had $32 billion in liabilities, or roughly 10% of its overall liabilities.</p> <p>Evergrande has been forced to halt trading in its onshore corporate bonds as a result of a downgrading, another red sign indicating an approaching default. China Chengxin International communicated the downgrade to Evergrande on September 15. Both the bonds and the issuer's rating are downgraded from A to AA. Evergrande was also placed on a watch list for future downgrades, according to a stock exchange filing.</p> <p>Evergrande raised almost $8 billion by August, according to a Bloomberg story, but this is a pittance in comparison to the amount it still owes.</p> <p>Tether's position is indicated.</p> <p>According to a Tether spokeswoman, "Tether does not currently possess any commercial paper, other debt, or securities issued by Evergrande, and never has." As previously stated in our published statements and in our most recent assurance attestation with a reporting date of June 30, 2021, the vast majority of Tether's commercial paper is in the hands of A-2 and higher rated issuers.”</p> <p>According to Reuters, over 50% of Tether's $62.8 billion in retained assets at the start of July 2021 were secured by commercial paper and certificates of deposit.</p> <p>In a series of tweets about the Evergrande news, Cinnemhian Ventures partner Adam Cochran stated that "IF either Tether or USDC did meltdown in a global collapse, it would actually be bullis