Stablecoins are rapidly expanding and could drain valuable retail deposits from euro zone banks, weakening their funding stability. The ECB warns that a run on major stablecoins could trigger large sell-offs of U.S. Treasury assets, disrupting global financial markets. Additional risks could impact the euro zone if jointly issued stablecoins face heavy redemptions under differing regulations.

Trump Signs Landmark GENIUS Act, Paving Way for US Dollar‑Backed Stablecoins