Willy Woo: Tether performs better than many banks during the redemption phenomenon, with 95% of assets still backed in extreme cases

Cryptanalysis expert Willy Woo released a comparison chart of bank runs, showing that Tether (USDT) fully redeemed during a redemption wave of about 20-25%, outperforming traditional banks like Silicon Valley Bank (25%) and First Republic Bank (57%).

Woo pointed out that Tether currently holds 77% of its assets in cash equivalents, with the remainder in gold and Bitcoin, totaling an excess collateral of 3%. Even if volatile assets plummet by 30% in extreme market conditions, USDT still has 95% asset backing.