Tethershit coin is a threat to financial stability. The whole thing is basically a scam, its not 1USDT=1USD, at all. If it was then Outstanding Tether = same number in USD cash. It is not.
USD cash in tether is about 2.9%, add fiduciary deposits = 21% of the total.
Here is the breakdown with my analysis
3% actual cash + fiduciary deposits = 21% USD
12% is "secured loans" == They bought big houses in the caribbean
10% precious metals/corporate loans == They bought Gold and stashed it
1.5% shitcoins == They bought shitcoins to pump and dump
5% TBills, reverse repo notes == could count as cash but interest bearing
AND roughly
50% Commercial Paper == +30 Billion == I will admit there is 1.1 Trillion outstanding in commercial paper, however that is close to 3% of all the outstanding commercial paper in the US.
Add USDC, maybe 5% of all commercial paper is held by usdt+usdc
If crypto market goes x5, stablecoins x5, then 25%...you get the picture. Commercial paper is what enables you to have a paycheck at the end of the week by the way.
my2satoshis
this complain is not really all that valid...plenty of money market funds with all kind of 'strange' collateral.
Nobody says peep squick about them, however, I never buy those, only Treasure money market (losing a bit on the yield, of course).
there is NO collateral quality difference between USDT and USDC, imho. I have much less USDT than USDC though, so, I guess, I was affected by FUD.