I also assume they are ultra low risk, but I also assume they are higher risk than USD or US Treasury bonds. For example, USDT is backed significantly by "comme

I also assume they are ultra low risk, but I also assume they are higher risk than USD or US Treasury bonds. For example, USDT is backed significantly by "commercial paper". Commercial paper does have a default risk, see https://en.wikipedia.org/wiki/Commercial_paper#Defaults https://en.wikipedia.org/wiki/Commercial_paper#Defaults