The resilience of stablecoins and whether they are backed by a reliable cash stack is a matter of debate in the cryptocurrency industry. Stablecoins aim to closely track the value of something else, usually the US dollar. So if investors put, say, $10 billion into a stablecoin, there should, in theory, be $10 billion somewhere to back it up. The largest stablecoin, Tether’s USDT, has been plagued for years by concerns that it is not fully supported. In 2021, Tether was forced to pay $18.5 million in fines after New York State discovered that it had falsely claimed that its stablecoin was fully backed 1-to-1 by US dollars.
With information from CoinDesk