... a discount (especially if interest rates suddenly rise even higher and older bonds trade below par). In such a case, during a large withdrawal surge, the company could incur losses. However, the current capital buffer and high liquidity of the main portfolio suggest that Tether could withstand significant outflows. An example is May 2022: at that time, over $10 billion USDT was redeemed in a short period, and Tether demonstrated its solvency. Nonetheless, the risk of a bank run cannot be entirely ...