Tether CEO: Full reserves for stablecoins, the risk exposed by tokenized deposits is the bank reserves

In response to the recent warning from Pablo Hernández de Cos, General Manager of the Bank for International Settlements (BIS), regarding the risks that stablecoins may pose to financial stability, Tether CEO Paolo Ardonio took to the X platform to criticize the BIS.

He stated that there is a fundamental difference in the underlying risk structure between stablecoins and tokenized bank deposits. Stablecoins are essentially tools that are 100% backed by high-liquidity assets (such as U.S. Treasury bonds); in contrast, tokenized bank deposits still belong to the deposit system of banks, which typically use a fractional reserve model, with only a portion backed by high-liquidity assets.