Tethers collapse or fall from the peg would be such a contagion within the entire crypto ecosystem. I would think all crypto holdings are at risk if there are large adverse findings in the disclosure.
Theoretically, USDC is backed (or more backed) by dollars.
I'm not sure why anyone has ever held a Tether for even 1 second. Even if you believe in it 100% - why not hold something other people believe in more?
USDC is fully backed by cash and short-dated U.S. government obligations, so that it is always redeemable 1:1 for U.S. dollars.
I'm surprised somebody like Chase hasn't started their own stablecoin and proven openly: we're backed 100% by T-Bills. We get some profit from holding your money, but it's small and safe. Why do they all have to be shady?
I suspect that if any bank tried to push out their own Crypto the Fed would have /Questions/ for them and in general it wouldn't work out well for the bank in question.
Because they're probably doing similar tricks with reserves and non-audit attestations.
https://www.coindesk.com/layer2/2022/03/24/correctly-was-wro...
"Grant Thornton has switched from calling the $52.3 billion stablecoin’s reserve accounts 'correctly stated' to the more equivocal 'fairly stated.' Here’s why that matters."
Of what, a few months of a 50% dip? Look at the chart, we've seen all of this before.