Author Topic: High interest rates on "Stablecoins" at my online brokerage  (Read 807 times)

blue_green_sparks

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High interest rates on "Stablecoins" at my online brokerage
« on: September 18, 2021, 06:34:11 AM »
I get notifications from one of my online brokers "Tradestation" offering 6% interest on USDC stablecoin. Of course this is uninsured by the government or anybody. I guess they loan out your stake and mention "risks to your principal" but I can't seem to identify exactly what the specific risks or levels are. I have a juicy CD expiring soon and I wouldn't mind parking say around 50K cash for 250 per month of play money...but caveat emptor and all. Any stablecoin/crypto experts on this high interest phenomenon care too enlighten me about the risk levels involved, or is it all just too unknowable?

HappilyHouseless

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Re: High interest rates on "Stablecoins" at my online brokerage
« Reply #1 on: September 18, 2021, 08:32:36 PM »
Rumor on the Street is that these "Stable Coins" are exposed to Chinese risks i.e. - Evergrande. Look up "China Commercial Paper Stable Coins"

https://www.fxstreet.com/cryptocurrencies/news/why-stablecoins-are-suddenly-in-the-news-202107280445

Tread VERY carefully. Might make 6% or lose 100%

blue_green_sparks

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Re: High interest rates on "Stablecoins" at my online brokerage
« Reply #2 on: September 19, 2021, 05:49:01 AM »
Rumor on the Street is that these "Stable Coins" are exposed to Chinese risks i.e. - Evergrande. Look up "China Commercial Paper Stable Coins"

https://www.fxstreet.com/cryptocurrencies/news/why-stablecoins-are-suddenly-in-the-news-202107280445

Tread VERY carefully. Might make 6% or lose 100%
Thanks. Seems like these coins may not be so stable if governments are currently deciding what to do about them. My old school fixed income allocation is slowly drying up and going into the total stock index because bonds are broken, pretty much.
« Last Edit: September 19, 2021, 11:35:39 AM by blue_green_sparks »

ChpBstrd

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Re: High interest rates on "Stablecoins" at my online brokerage
« Reply #3 on: September 22, 2021, 06:34:39 AM »
I have a feeling people are about to learn the benefits of market regulation.

 

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