Bridging DeFi and FX: The role of Tether in multi-asset portfolios

USDT serves as a bridge between decentralized finance and traditional Forex markets, with turnover outperforming many fiat pairs. Its 24/7 availability and fast settlement times make it appealing to FX traders seeking liquidity.

Incorporating USDT into multi-asset portfolios can significantly reduce transaction times. However, risks related to reserve composition and regulatory scrutiny remain, calling for a cautious approach when managing USDT exposure.

Institutional traders creatively utilize USDT for strategies like synthetic carry trading to optimize yields while managing risks effectively. Developing appropriate policies for USDT integration is crucial for compliance and operational efficiency.

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