Analysts at Deutsche Bank also argued Tether’s solvency status is “questionable” which the stablecoin firm said is “ironic” considering the bank’s own history with fines.
Stablecoin giant Tether has slammed Deutsche Bank over a newly released report suggesting that stablecoins — including its dollar-pegged token Tether (USDT) — could witness a “peso moment,” that would wreak havoc on the crypto industry.
In a May 7 research report on stablecoins, Deutsche analysts cited the 2022 collapse of the Terraform Lab’s algorithmic stablecoin TerraUSD (TUSD) which saw at least $40 billion wiped from the market in a few days, as cause for wider criticism of dollar-pegged stablecoin products.
From a study of 334 currency pegs from the last 223 years, analysts found that 49% of fixed currencies failed over the course of their median life span of approximately eight to ten years.
