Mar 15Liked by Jonny Fry

Johnny. Something is missing here. Any bank can issue a so called stablecoin. And they can say it is backed by cash, but that still leaves coinholders as unsecured creditors. If there is a bankruptcy all creditors have a claim on the sum of all the assets.

To truly be able to say the stablecoin is asset backed the issuer would have to do at least one of two things: make the vehicle holding the asset bankruptcy remote from the issuer. And, ideally the underlying cash would need to be held with a central bank.

The nuance matters.

Expand full comment