Tether ruled out the impact of Celsius problems on the stability of USDT

According to representatives of the stablecoin issuer, the company has a reserve to maintain the rate

14.06.2022 - 09:45

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What’s new? Tether (the issuer of USDT, a centralized stablecoin) said that there is no correlation between suspending most of the functions of the Celsius DeFi platform and maintaining the stability of the USDT rate. According to the Tether team, their portfolio includes investments in Celsius, but they represent a minimal part of the equity capital. This information was posted on the company’s blog on June 13.

Tether’s blog post

What other statements have been made? Tether has also stated that there is no connection between the company’s investments in Celsius and its own reserves. Tether’s interaction with Celsius has always been overcollateralized and the current situation has no impact on the company’s reserves.

On June 13, Celsius suspended withdrawals, exchanges, and transfers between accounts. According to a statement on the company’s blog, the decision was taken “due to extreme market conditions.” No timeline had been given for the resumption of services. The ultimate goal of Celsius is to stabilize liquidity, as well as preserve and protect assets.

Celsius is a DeFi banking platform for lending and staking cryptocurrencies. The project was founded in 2017 by Alex Mashinsky and Daniel Leon. The platform also has a cryptocurrency wallet called Celsius Wallet.

USDT is the largest US dollar-pegged stablecoin by capitalization. As of June 14, the asset is ranked third in the CoinMarketCap ranking with a total amount of funds in circulation worth $71,5 billion.

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