Tether has announced that the USDT reserves “hold strongly” even as cryptocurrency lending provider Celsius (CEL) feels the heat of crypto volatility.

The stablecoin issuer, in a statement to this effect released on Monday, said the events wont have an impact on the stablecoin’s reserves.

Tether felt the need to clarify the situation, as evidenced by recent events involving TerraUSD’s collapse (USD)

“The recent events impacting the Celsius lending platform and its native token CEL are an unfortunate result of market volatility and extreme market conditions,” Tether noted.

There is no correlation with USDT

According to the company, while its portfolio holds an investment in Celsius, it is but a “minimal part” of its shareholders equity. Tether claimed that its crypto lender investment has no correlation with its USDT reserves.

Additionally, the lending activity between Tether and Celsius “has always been overcollateralized,” adding to the overall assertion that none of what’s happened with Celsius has an impact on the stablecoin issuer’s reserves.

Celsius announced on Monday that all withdrawals, transfers, or swaps would be halted as it attempted to avoid massive volatility.

“We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations,” Celsius said in a message to the community.

At the time of writing, the platform had not resumed operations. The native CEL token has fallen 21% over the last 24 hours, and almost 96% since January 2017.