Even a mountain of T-bills won't save Tether and Circle from a sudden liquidity crisis, expert says
Experts warn that despite holding significant amounts of Treasury bills, Tether and Circle could still face a sudden liquidity crisis. The reliance on T-bills, while generally considered safe, may not provide enough liquidity in times of market stress. Analysts emphasize that the stability of stablecoins like USDT and USDC is contingent on market confidence and the ability to quickly convert assets into cash. Additionally, potential regulatory changes and market volatility could exacerbate liquidity risks for these companies. Overall, the situation highlights the fragility of stablecoin liquidity in uncertain economic conditions.
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