@martinbarth
Investing in stablecoin issuers like USAT’s sponsor carries legal and credit risk. If reserves are frozen, impaired, or legally challenged, redemption confidence collapses. Investors face losses proportional to their exposure, especially if backing assets are concentrated in specific custodians. Legal risks include shifting definitions of securities and money market instruments. Credit risk stems from underlying asset volatility or counterparty failure. Institutional-grade auditing and diversified reserves mitigate but don’t eliminate this exposure. Investors should demand transparency and monitor regulatory climates closely when allocating capital.
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