Crypto News: Stablecoin Market Tops $280B as ECB Flags Systemic Risk

The post Crypto News: Stablecoin Market Tops $280B as ECB Flags Systemic Risk appeared on BitcoinEthereumNews.com.

The stablecoin market exceeded $280B. The ECB warns of systemic risk, citing potential destabilization if retail deposits shift from banks. The ECB stated stablecoins could destabilize the financial system. This may occur through the attractions for retail deposits. These would run away from eurozone banks. The stablecoin market cap has exceeded $280 billion. Dollar Stablecoins Dominate 99% of Market Amid Regulatory Shift A run on stablecoins could result in a fire sale. This is the situation with reserve assets. This would strike US Treasury markets. It may even possibly lead to a financial crisis. This would happen in the absence of coordinated regulation at the global level. Stablecoins have grown at a phenomenal rate. They accelerated their combined market capitalization to more than USD 280 billion. This is a new record. It is about 8% of the crypto-assets market globally. Their rapid rise has incurred attention. Related Reading: Crypto News: Systemic Stablecoin Risk Could Force ECB Interest Rate Path Adjustment | Live Bitcoin News While the demand from investors is key to growth, regulatory clarity also matters. This is the cause of rising concern for policymakers. Financial stability is an important concern. The European Central Bank addresses structural weaknesses. These include the risks of de-pegging. They also suggest dynamics in running. Their growing interlinkage with conventional finance is worrisome. Two U.S. dollar-denominated stablecoins are popular on the market. Tether (USDT) is worth USD 184 billion. This is 63% of the entire sector. USD Coin (USDC) adds another 75 billion USD. This is 26% of the total.                                                                               Source: ECB Dollar-based stablecoins are…