SoFi CEO: I worry 'quite significantly' about stablecoins not backed by banks

Stablecoin Risks - The industry expresses significant concern regarding stablecoins from non-bank operators [1] - Key considerations include the location of reserves, duration risk, credit risk, and bankruptcy remoteness of those reserves [1] Risk Mitigation - SoFi aims for zero credit risk and zero liquidity risk, and is working on bankruptcy remoteness for its stablecoin [2] - Dollar-for-dollar backing does not guarantee the availability of those dollars upon liquidation [2]