[whimsicalism]

They are, however, backed by the FDIC.

[sschueller]

Only up to 250k. Any more and you need your own insurance.

[ARandumGuy]

$250k per account, up to 6 accounts. So the FDIC insures up to $1.5 million. If you have more then that, I think you can find other ways to secure your money.

[toomuchtodo]

Anything above FDIC insurance limits and you’re in US Treasuries, backed by the full faith and credit of the US Treasury. They’re one of the safest financial assets in the world. The risk of default is almost, but not quite, zero.

[ffggvv]

the fed has never not bailed people out, whether it’s money market funds or anything else even if not fdic insured

[anm89]

The FDIC could not make the system solvent in the event everyone tried to redeem their funds. It can only keep up confidence to try to prevent people from all trying to redeem their funds.

[whimsicalism]

The government promising by law to pay everyone back does build more confidence than Tether's 2.3 cents + outstanding debt from other exchanges.

This is why I stick with defi stablecoins.