ChainCatcher report: In response to recent warnings by BIS General Manager Pablo Hernández de Cos that stablecoins may pose risks to financial stability, Tether CEO Paolo Ardoino posted a critique of the BIS on X. He stated that there is a fundamental difference in the underlying risk structure between stablecoins and tokenized bank deposits; stablecoins are instruments fully backed 100% by highly liquid assets such as U.S. Treasuries, whereas tokenized bank deposits remain deposits within the banking system and are typically supported by a fractional reserve model, with only a portion backed by highly liquid assets.
Tether CEO Disputes BIS's Stablecoin Risk Warning, Highlights Differences from Tokenized Deposits
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Summary
Tether CEO Paolo Ardoino responded to the BIS’s stablecoin risk warning, calling the concerns misplaced. He emphasized that stablecoins are fully backed by liquid assets such as U.S. Treasury bonds, unlike tokenized deposits. On-chain news shows stablecoins remain a key part of the crypto market. Federal Reserve developments have also drawn attention as regulators increase scrutiny. Ardoino stressed the structural differences between the two systems.
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