www.pingtransfer.org
(Compared to USD Fiat)
1. Depegging Risk
- USDC: Experienced a temporary depeg in March 2023 when $3.3 billion of its reserves were held at the failing Silicon Valley Bank, causing its value to drop to $0.87 before recovering .
- WYT: Backed 1:1 by short-term U.S. Treasuries held by a Wyoming-chartered bank, offering strong peg stability.
- USD Fiat: Maintains value through government backing and monetary policy, with no concept of depegging.Wikipedia+5Halborn+5Kraken+5
2. Reserve Transparency
- USDC: Provides monthly attestations of reserves, but faced scrutiny over reserve management during the SVB incident .
- WYT: Reserves are held in U.S. Treasuries by a state-chartered bank, subject to regulatory oversight.
- USD Fiat: Issued and regulated by the U.S. government, with transparent monetary policies.
3. Regulatory Oversight
- USDC: Issued by Circle, a private company subject to U.S. regulations, but not directly overseen by federal banking regulators.
- WYT: Issued by a Wyoming-chartered bank, under state banking regulation.
- USD Fiat: Fully regulated and backed by the U.S. Federal Reserve and Treasury.S&P Global
4. Insurance and Legal Protections
- USDC: Not insured by the FDIC; holders bear the risk of issuer insolvency.
- WYT: Not FDIC-insured, but backed by U.S. Treasuries and state banking regulations.
- USD Fiat: Deposits in U.S. banks are insured up to $250,000 by the FDIC.SpringerOpen+3Circle+3Reddit+3
5. Operational Risks