Christoph Hock, Head of Digital Assets at Union Investment, criticized Tether (USDT) and USDC at the Digital Money Summit 2026 in London, claiming their reserves resemble high-risk hedge funds rather than stablecoins. Hock highlighted that Tether's reserves include significant holdings of gold and Bitcoin, which introduce market volatility risks to corporate treasuries and institutional investors. He pointed to USDC's past 13% depeg event as a "catastrophic risk" for those relying on stablecoins for cash settlements. Hock emphasized the need for stablecoins to maintain their original purpose as fiat-pegged digital cash, warning against significant market value losses in cash positions. As of January 2026, Tether's gold reserves were approximately 148 metric tons, valued at $23 billion, surpassing the gold reserves of some nations. With European regulators increasing scrutiny on stablecoins, reserve transparency and liquidity risk remain key concerns for financial institutions.