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flag Tether’s $181B reserves lack bank-like safeguards, raising stability concerns despite cash holdings.

flag Cryptocurrency analyst Willy Woo prompted an AI comparison of Tether’s reserve backing with traditional banks amid concerns over its solvency. flag Following warnings from BitMEX co-founder Arthur Hayes that a 30% drop in Tether’s gold and Bitcoin holdings could erase its equity, the analysis highlighted that while both face risks, traditional banks generally have more stable funding, regulatory oversight, and deposit insurance. flag Tether’s $181 billion reserves include $139 billion in cash but lack transparency and regulatory safeguards, raising questions about its stability compared to banks.

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