Everything on Fintech Risk

Tether's reserve structure includes a shrinking capital buffer and significant exposure to illiquid assets like AI ventures and gold. This deviates from the standard 1:1 dollar backing model.

Impact: A liquidity crisis in the crypto market could trigger a depegging event, disrupting settlement mechanisms and causing broader financial instability.

— from Microsoft Carbon Monopoly, Iran Conflict, Tether Risks · Mikroökonomen a.k.a. Mikrooekonomen· Mar 22, 2026