Tether strongly criticized a Deutsche Bank report that raised concerns about the stability of stablecoins, including Tether’s dollar-pegged token, predicting a potential crisis similar to the 2022 collapse of Terrausd, which erased billions from the market. Deutsche Bank analysts, citing a study of 334 historical currency pegs, suggested that most stablecoins will face significant challenges and likely fail due to speculative sentiment, lack of transparency, and vulnerability to de-pegging events; specifically pointing to Tether’s opaque reserve holdings. In response, Tether dismissed the report’s conclusions as lacking substantial evidence and clarity, defending its transparency and reserve-backing practices while questioning Deutsche Bank’s credibility due to its own history of fines and penalties.
Tether Counters Deutsche Bank's Stablecoin Warning, Defends Reserve Transparency
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