US Fed Official Calls Tether a ‘Challenge’ to Financial Stability

“The reason I talked about Tether and stablecoins is if you look at their portfolio, it basically looks like a portfolio of a prime money market fund but maybe riskier,” he said. Tether “has a number of assets that, during the pandemic, the spread got quite wide on those assets.” Spread widening refers to a sell-off in the credit markets, when the difference in yield increases between a risky asset such as a corporate bond and one perceived as safe like a Treasury bond.