Union Investment Criticizes Private Stablecoins for Structural Flaws

Union Investment has raised concerns about private stablecoins like Tether and USDC, highlighting their structural weaknesses. According to NS3.AI, the asset manager likened these stablecoins to stealth hedge funds, pointing out that their reserve assets, which include Bitcoin and gold, could lead to potential losses for corporate finance teams or institutional investors during periods of market volatility.