“The big challenge that’s happening, let’s say there’s been a leak, let’s say there’s been a bankruptcy or a major problem. The holder of the stablecoin has no contractual rights to the funds on deposit. The only one who does it, who has a say and who can control it is the underlying issuer, which is not the custodian, ”Barnett said. He said such a crisis can be avoided if a private bank is both the issuer and the custodian.
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