The price of Tether came under pressure amid the crypto market stress, with the largest stablecoin temporarily losing its peg on 12 May. Since then, Tether has seen outflows of more than € billion, which is equivalent to almost 10% of its market capitalisation. 21. Their liabilities are liquid and redeemable on demand, but their assets are longer term and less liquid. 22.
Such as adequate regulation, public insurance and/or access to central bank liquidity. 23. The use of collateral helps align the incentives of the borrower and lender in markets with high asymmetric information.