Could a Tether collapse destabilize the US Treasury market?

Could a Tether collapse destabilize the US Treasury market?

According to a recent Bank of International Settlements (BIS) working paper, a bank run on a major stablecoin issuer could cause “potential fire sales” in short-dated Treasuries. Researchers claim that stablecoin issuers’ pricing impact on the world’s largest bond market is “already measurable” and given the tame environment of steadily bullish growth on which they based their analysis, “is likely to be a lower bound of potential fire sale effec…