ECB Warns Stablecoins Are Rising Fast With Spillover Risks

The European Central Bank (ECB) has warned that the rapid expansion of stablecoins—despite their still-limited footprint in the euro area—poses emerging financial-stability risks, especially as interlinkages with global markets deepen. The findings come from the ECB report Stablecoins on the rise: still small in the euro area, but spillover risks loom, prepared by Senne Aerts, Claudia Lambert, and Elisa Reinhold, which examines structural vulnerabilities, use cases, and cross-border risks tied to the acce ...