Crypto analyst Willy Woo highlighted Tether's resilience during bank runs, noting its ability to maintain 95% asset backing even under extreme conditions. In 2022, Tether faced a 20-25% redemption wave but successfully redeemed all assets, surpassing traditional banks like Silicon Valley Bank and First Republic Bank, which managed only 25% and 57% respectively. Woo emphasized that 77% of Tether's assets are in cash equivalents, with the rest in gold and Bitcoin, ensuring a 3% overcollateralization. This structure allows Tether to remain robust even if volatile assets drop by 30%.
Tether Outperforms Banks in Asset Backing During Redemption Waves
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