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How so? Stable coins issued under the GENIUS Act are fully reserved, unlike regular banks.
by drumdance 1y ago
How so? Stable coins issued under the GENIUS Act are fully reserved, unlike regular banks.
- grafmax 1y agoThey’re backed by treasuries and subject to treasury market shocks (like the March 2020’s dash for cash). Large redemptions can see a feedback loop of redemption -> rushed selling -> treasury market stress -> redemption. Exactly the sort of scenario one might expect as the secular trend of the weakening dollar bubbles to the market’s surface. Stablecoins hold a sizable portion of the treasury market - https://fintelegram.com/stablecoins-became-a-top-20-us-debt-holder-is-treasury-risk-now-tokenized/ https://fintelegram.com/stablecoins-became-a-top-20-us-debt-...