$ETH
The Financial Stability Board (FSB) issues a major warning
The $300 billion stablecoin market
faces the risk of a run
Guys,
Ahead of the G20 meeting,
the FSB released its latest report,
ringing the alarm on stablecoins.
The global stablecoin market, worth around $300 billion,
could still face a run
—even if reserves are fully backed.
The main source of risk is cross-border asset mismatches.
Stablecoin issuers have affiliated entities in multiple countries.
Redemption requests may be concentrated in one country,
while reserve assets are held in another jurisdiction.
When markets panic,
cross-border transfers can be restricted,
so reserves can't be moved quickly enough to meet redemptions,
triggering a run.
The biggest mismatch is this:
on-chain stablecoins can be redeemed anytime, 24/7,
but reserve assets are mostly U.S. Treasuries and bank deposits.
Traditional financial markets have limited trading hours.
Crypto holders can withdraw their coins at any time,
while trading in the underlying assets may be closed.
This timing gap in liquidity amplifies the risk.
What's more, of the roughly $300 billion in stablecoins worldwide,
about 99% are pegged to the U.S. dollar.
If a large-scale run occurs,
issuers could be forced to sell U.S. Treasuries,
transmitting the risk to traditional financial markets.
So this isn't just a problem for the crypto world.
Put simply,
if something goes wrong, no one's in charge.
Guys,
I think this makes a lot of sense.
Even this timing gap alone
would be very hard to resolve.
After all, different operating hours
will inevitably create some discrepancies.
This also applies to tokenized stocks.
Why do they keep having those wild price wicks?
It's because the trading hours differ,
which creates discrepancies.
And they're all pegged to the U.S. dollar.
What happens if the dollar runs into trouble?
Guys,
what do you think?
#fsb警告3000亿美元稳定币或面临挤兑
The Financial Stability Board (FSB) issues a major warning
The $300 billion stablecoin market
faces the risk of a run
Guys,
Ahead of the G20 meeting,
the FSB released its latest report,
ringing the alarm on stablecoins.
The global stablecoin market, worth around $300 billion,
could still face a run
—even if reserves are fully backed.
The main source of risk is cross-border asset mismatches.
Stablecoin issuers have affiliated entities in multiple countries.
Redemption requests may be concentrated in one country,
while reserve assets are held in another jurisdiction.
When markets panic,
cross-border transfers can be restricted,
so reserves can't be moved quickly enough to meet redemptions,
triggering a run.
The biggest mismatch is this:
on-chain stablecoins can be redeemed anytime, 24/7,
but reserve assets are mostly U.S. Treasuries and bank deposits.
Traditional financial markets have limited trading hours.
Crypto holders can withdraw their coins at any time,
while trading in the underlying assets may be closed.
This timing gap in liquidity amplifies the risk.
What's more, of the roughly $300 billion in stablecoins worldwide,
about 99% are pegged to the U.S. dollar.
If a large-scale run occurs,
issuers could be forced to sell U.S. Treasuries,
transmitting the risk to traditional financial markets.
So this isn't just a problem for the crypto world.
Put simply,
if something goes wrong, no one's in charge.
Guys,
I think this makes a lot of sense.
Even this timing gap alone
would be very hard to resolve.
After all, different operating hours
will inevitably create some discrepancies.
This also applies to tokenized stocks.
Why do they keep having those wild price wicks?
It's because the trading hours differ,
which creates discrepancies.
And they're all pegged to the U.S. dollar.
What happens if the dollar runs into trouble?
Guys,
what do you think?
#fsb警告3000亿美元稳定币或面临挤兑