The Fed has released a new report on stablecoins.
The Fed released a new report on stablecoins on May 9. The report noted that stablecoins are risky in certain money market funds and bonds, and in particular funding. The report comes after the algorithmic stablecoin UST, which caused concern in the crypto community with its massive collapse last night, fell to $ 0.60. The report states:
“Some money market funds (MMFs) and stablecoins remain risky. Funding risks at local banks are low, but structural vulnerabilities remain in some money market funds, bond funds and stablecoins.”
The Fed has also published a study in the past months that addresses the risks and benefits of stablecoins.
