Market News
Stablecoins could siphon off euro zone bank deposits, ECB warns - REUTERS
FRANKFURT, Nov 24 (Reuters) - Stablecoins could draw valuable retail deposits away from euro zone banks and any run on a coin could have widespread stability implications for the global financial system, the European Central Bank warned on Monday.
Stablecoins, digital assets designed to maintain a stable value, have been growing in popularity and their market value now exceeds $280 billion, a relatively small figure but still notable because issuers have been among the largest buyers of U.S. Treasuries.
They are intended as a store of value and to provide cross-border payments, but their real use is in buying crypto assets, the ECB argued in a Financial Stability Review article, adding that about 80% of all trades currently executed globally on centralised crypto trading platforms involve stablecoins.
