Tether CEO Criticizes BIS, Argues Tokenized Deposits Pose Greater Reserve Risks

Tether CEO Paolo Ardoino hit back at the Bank for International Settlements (BIS) after General Manager Pablo Hernández de Cos warned of financial stability risks posed by stablecoins. Ardoino argued that stablecoins are fundamentally different from tokenized bank deposits, as they are backed by 100% high-liquidity assets like U.S. Treasuries, whereas tokenized deposits operate under fractional reserve models. Ardoino questioned why users would prefer fractional reserve products over fully backed stablecoins and suggested that as awareness grows, capital ma