Liquidity Fears Rise as ECB Warns on Foreign Stablecoin Issuers

TLDR: ECB President Christine Lagarde cautioned that foreign stablecoins could undermine EU safeguards by creating cross-border liquidity mismatches. Lagarde said multi-issuance stablecoin schemes expose investors to redemption risks when reserves are split across jurisdictions. The EU’s MiCAR rules require stablecoin redemption at par, but gaps remain when issuers operate outside EU supervision. Lagarde urged stronger [...]

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