In a statement, Grayscale clarified that Genesis Global Capital does not serve as a counterparty or service provider for any of its products. After Genesis Global Capital ceased withdrawals recently, Grayscale stated that its products are working “as usual” and that operations have not been disrupted by “recent events.”
It is noteworthy that Grayscale had a business relationship with the independent entity of Genesis, known as Genesis Global Trading. The firm commented on its Grayscale’s Bitcoin Trust, also known as GBTC, and stated that it continues to be backed by underlying assets that are “safe and secure,” as they are housed in segregated wallets that are kept in deep cold storage by the Coinbase which acts as its custodian.
In addition, Grayscale mentioned that it “does not borrow, lend, rehypothecate, or otherwise encumber the products’ underlying assets, and the custodian for the assets is prohibited from engaging in such activity.”
Crypto Players Try To Demonstrate Sufficient Reserves
After crypto exchange FTX applied for protection under Chapter 11 of the United States Bankruptcy Code last week, many entities and industries are feverishly attempting to demonstrate that they have sufficient reserves. Another one in the list is Tether, a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner. The platform also confirms zero exposure to Genesis. On November 16, 2022, the company announced that it ”would like to confirm that it has absolutely no exposure to Genesis or Gemini Earn.”
The platform brought up ‘the black swan events’ stating:
“It is important at a time like this to highlight that these reserves have proved tried and true demonstrating consistent resilience during the black swan events that have characterized the market this past year.”
Tether clarified that it is prioritizing the needs of the clients as always. The platform concludes: ”Tether is operating business as usual and will continue to do so putting our customers first.”