Stablecoins Emerge as a $300 Billion Contagion Risk for European Financial Stability
Stablecoins have evolved from crypto plumbing to a $303 billion market, with Tether and USDC dominating 81% of the sector. Nearly all are dollar-pegged, creating an unmonitored channel for US financial stress to spill into Europe.
ECB officials now warn these assets pose systemic risks as they integrate with traditional finance. Bank of Italy's Fabio Panetta notes their collapse could Ripple beyond crypto markets, while Jürgen Schaaf's 'From HYPE to hazard' analysis underscores their transformation into macro-financial vulnerabilities.