Stablecoins Like Tether Could Pose New Risks to Securities Markets, Warns Fitch

Stablecoins Like Tether Could Pose New Risks to Securities Markets, Warns Fitch
Stablecoins such as tether (USDT), now a significant investor in the $1.1 trillion commercial paper market, could introduce new risks into short-term securities markets, warns global ratings agency Fitch Ratings.At the current rate of growth, stablecoin issuers’ holdings of short-term debt instruments such as commercial paper – a commonly used type of unsecured debt issued by corporations, typically used for the financing of payroll, accounts payable and inventories – will grow to exceed that of money market funds over the next two to three years, according to Fitch.The scale of run risks and stablecoin-related turbulence posed to commercial paper markets…