Bearish
Tether and Circle Face Liquidity Crisis Risk Despite Massive T-Bill Holdings, Expert Warns
20.05.2026 00:18
A financial expert has warned that even substantial holdings of U.S. Treasury bills (T-bills) may not be enough to protect stablecoin issuers Tether (USDT) and Circle (USDC) from a sudden liquidity crisis. The analysis highlights that while T-bills are considered a safe asset, they cannot be instantly liquidated without potential losses during a market panic. This raises concerns about the resilience of USDT and USDC in extreme market conditions, where rapid redemptions could strain reserves. The expert emphasizes the need for more robust liquidity buffers and regulatory oversight to ensure stablecoin stability.
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