Stablecoin Risk
13 stories
Europe pushes to cut bank risk in stablecoin reserves
Central banks in Europe want to scrap rules that force stablecoin issuers to keep big deposits in commercial banks. They aim to shift reserves to short-term assets, a move that could change how stablecoins handle risk across the EU.
Aave Borrow Rate Hike Squeezes Ethena USDe Yield Loops
Aave faces mounting pressure as LlamaRisk pushes to raise USDe borrowing rates across five major markets, threatening the profitability of leveraged sUSDe yield strategies and exposing users to negative returns.
Moonwell Bad Debt Plan Cuts Interest but USDC Withdrawals Still Frozen
Moonwell's new proposal could sharply reduce interest on bad debt, but users with USDC deposits remain unable to withdraw funds as the protocol weighs further risk and recovery steps
Dubai Court Orders TrueUSD Defendant to Reveal Legal Funding Sources
A Dubai court has set a September 7 deadline for Matthew William Brittain to disclose the origins of millions in legal payments tied to a $456 million TrueUSD reserve dispute, with potential sanctions if he fails to comply
Banks Turn to Tokenized Deposits to Compete With Stablecoins
U.S. banks are rolling out tokenized deposits to keep customer funds on their balance sheets, aiming to offer 24/7 programmable settlement and defend against stablecoin-driven funding pressures
River Protocol Lets Users Mint Stablecoins Across Multiple Blockchains
River introduces a cross-chain protocol enabling users to lock collateral on one blockchain and mint the satUSD stablecoin on another, raising new questions about capital efficiency, risk, and the complexity of decentralized finance infrastructure
StandX DEX Launches Yield-Bearing DUSD Stablecoin With On-Chain Risks
StandX introduces a decentralized perpetual exchange and DUSD, a stablecoin that shares protocol revenue with holders. The platform promises noncustodial leveraged trading but exposes users to smart contract, liquidity, and peg risks.
Trump-Backed USD1 Stablecoin Faces Scrutiny Over Hidden Admin Controls
Justin Sun alleges World Liberty Financial's USD1 stablecoin allows privileged operators to move funds from frozen wallets, raising concerns about undisclosed contract powers and transparency gaps as the project seeks U.S. trust bank approval
OCC Approves Trump-Linked DeFi Bank as $112M WLFI Debt Nears Liquidation
World Liberty Financial, tied to Donald Trump, has received OCC approval to form a national trust bank for its USD1 stablecoin, even as a $112 million DeFi loan backed by WLFI tokens faces mounting liquidation risk on Dolomite.
Tether's First Big Four Audit Raises New Questions for Stablecoin Rules
Tether secured its first full audit from a Big Four firm, but new U.S. regulations and reserve requirements could reshape what counts as transparency for stablecoin issuers going forward
Tether's Alloy Shutdown Leaves $50M in Gold-Backed Debt Unresolved
Tether is closing its Alloy platform, putting nearly $50 million in gold-backed stablecoin debt at risk for users who miss the September 17 deadline to reclaim collateral. Only five open positions remain, but recovery options are unclear.
Quantum Threat Could Trigger Undetected Crypto Wallet Breaches
Crypto security leaders warn that the first quantum computer attacks may resemble routine wallet losses, with high-value targets like Tether's minting key at risk and timelines for 'Q-day' now as early as 2028
Tron Adds $2.2B in Stablecoins as Market Shrinks, But Risks Remain
Tron's network absorbed $2.2 billion in new stablecoins in 30 days, even as the overall stablecoin market contracted. But heavy reliance on Tether and ongoing token inflation raise questions for investors considering TRX.