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It's not about trading pairs, those can easily switch to USDC or other stables. The big challenge will be the futures markets which are nearly exclusively with USDT. If tether collapses so do all those futures, which presumably will cause chaotic algorithmic driven effects as hedging positions evaporate.



What about the billions in exchange balances held in USDT? That's a lot of liability for the exchanges holding those, right?


You mean a liability for the users of that exchange


CME futures are all USD cash settled.

Or are you referring to unregulated futures on some crypto exchanges?


> those can easily switch to USDC or other stables.

So why don't they? Why would literally anyone choose to hold USDT over any other stablecoin?




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