Fragility of the dollar system: balance sheets to blockchains
By Arjun Sethi, Kraken co-CEO
The illusion of liquidity
It happened in September 2019 when overnight repo rates spiked to 10%. It happened in March 2020 when Treasury markets seized and the world’s benchmark “risk free” asset had no bid. It happened again in March 2023 when regional banks failed and the Fed had to create a new emergency facility just to keep collateral circulating.