Even a mountain of T-bills won't save Tether and Circle from a sudden liquidity crisis, expert says
CoinDesk
An institutional asset manager warns that Tether and Circle behave like hedge funds rather than stablecoins, creating significant risks for institutional investors.Summary
Christoph Hock of Union Investment argues that major stablecoins like Tether (USDT) and Circle's USDC fail to function as true fiat-pegged assets. By holding volatile assets such as gold and bitcoin, these issuers operate more like hedge funds than secure cash equivalents. Hock warns that their structural reliance on these assets, combined with historical liquidity issues, poses a catastrophic risk to institutional investors who require stability for overnight cash settlements, noting that previous de-pegging events have already exposed deep vulnerabilities.
(Source：CoinDesk)