Onramp Bitcoin Media The Truth About Tether, Stablecoins & JPMorgan’s Quiet Bitcoin Bet
22 snips
Dec 1, 2025 The discussion kicks off with reflections on Bitcoin sentiment and year-end market positioning. Tether's stability comes under scrutiny, especially after its S&P downgrade due to risky reserves like Bitcoin and gold. They delve into JPMorgan's foray into stablecoins and the competitive landscape with KlarnaUSD. The conversation discusses the importance of custody solutions and the vulnerabilities of different technologies. They also explore the potential of structured Bitcoin products to draw in new clients, emphasizing education and distribution.
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Tether's Reserve Mix Is A Double-Edged Sword
- S&P downgraded Tether because holding volatile assets like Bitcoin and gold reduces perceived stability.
- A simultaneous price crash plus mass redemptions could create a shortfall despite current over-collateralization.
Audit Reveals Concentration In Non-Treasury Assets
- The audit shows Tether holds short-term Treasuries plus riskier assets like BTC and gold worth roughly $24B.
- Analysts warn a 30% drop in BTC and gold alongside a run could leave a redemption gap.
Don't Treat Any Reserve As Risk-Free
- Recognize there is no risk-free reserve choice; every backing has trade-offs between volatility and purchasing power.
- Diversify exposures and assess counterparties before relying on stablecoins as risk-free cash equivalents.
