A recent filing by Circle highlights potential risks tied to its USD Tether (USDT) stablecoin, according to PANews and Bloomberg analyst James Seyffart. The S-1 document reveals Circle acknowledges the negative implications that may arise from issues associated with USDT or perceived instability in the market could negatively impact trust towards other stablecoins, including those issued by Circle itself. Price fluctuations in the secondary market, such as temporary price dislocations or a full run on USDT, could lead to increased redemption demands from users and potentially similar price fluctuations for Circle’s stablecoins. Although Circle has never faced an inability to fulfill customer requests during such disruptions, the volatile nature of inflows and outflows coupled with high demand for minting or redemptions could create operational challenges in meeting these demands.