Asset Manager Executive Says Tether and USDC Reserves Resemble Hedge Funds

Christoph Hock, head of tokenization and digital assets at Union Investment, said USDT and USDC do not function as true stablecoins because their reserves include large holdings of gold and bitcoin. Hock spoke at the Digital Money Summit 2026 in London. He noted that Tether holds an estimated 148 tonnes of gold valued at roughly $23 billion as of January 2026.

Hock said the reserve structures make the tokens behave like hedge funds. He pointed to USDC price drops of 13 percent in March 2024 and to 87 cents in 2023 as examples of sudden mark-to-market losses. He added that corporate treasuries using these tokens for overnight cash settlement face exposure to volatility that stablecoins were intended to avoid.

Hock stated that taxpayers might again be required to provide support in a future liquidity event, referencing the 2023 de-pegging incident. European regulators are increasing scrutiny of private stablecoins, according to the same remarks.