Likely in the case of a bank run, Tether cannot redeem even a cent because their organisation is unable to serve any customer outside few selected one (no staff, no processed). However the damage to retail US investors should be quite well contained, as I do not feel they have significant Tether holdings. It is mostly (shady?) professional traders (Alameda, Celsius) and offshore (China) that use Tether.
Tether is 50% of crypto trading. Tether stopping would case quite interesting escape into either Bitcoin or some other liquid widely available pair (ETH). Prices would shoot up until real dollar offramps can pick it up. Long term USDC, USDP snd other more robust stablecoins can pick up the slack. Tether is not too big råto,fail, though is massive.
> the damage to retail US investors should be quite well contained, as I do not feel they have significant Tether holdings
This is my understanding. The U.S. regulatory apparatus appears to have deterred Tether from getting too involved here. China, too, seems to have taken the hint.
Tether is 50% of crypto trading. Tether stopping would case quite interesting escape into either Bitcoin or some other liquid widely available pair (ETH). Prices would shoot up until real dollar offramps can pick it up. Long term USDC, USDP snd other more robust stablecoins can pick up the slack. Tether is not too big råto,fail, though is massive.