ECB Doubles Down on Warning That Stablecoins Could Pose Global Financial Risks

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email ECB Doubles Down on Warning That Stablecoins Could Pose Global Financial Risks The EU’s central bank says stablecoins draw value from eurozone banks and could pose a risk to global financial stability. By Olivier Acuna | Edited by Sheldon Reback Nov 24, 2025, 11:19 a.m. The European Central Bank building. (ECB Press modified by CoinDesk) What to know : The European Central Bank said stablecoins could destabilize the financial system by drawing retail deposits away from eurozone banks. Stablecoins' market capitalization has surpassed $280 billion, representing about 8% of the total cryptocurrency market. The ECB said a run on stablecoins could lead to a fire sale of reserve assets, hitting U.S. Treasury markets and possibly triggering a financial crisis. The European Central Bank (ECB) on Monday released a report warning that stablecoins posed a global financial stability risk because they could draw valuable retail deposits away from eurozone banks. "Significant growth in stablecoins could cause retail deposit outflows, diminishing an important source of funding for banks and leaving them with more volatile funding overall," the ECB said. STORY CONTINUES BELOW Don't miss another story. Subscribe to the State of Crypto Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . Stablecoins’ combined market capitalization has grown to more than $280 billion, driven by increased investor interest and global regulatory progress, and now accounts for about 8% of the total cryptocurrency market. The largest participants, Tether, the company behind USDT, and Circle Internet (CRCL), issuer of USDC, are among the biggest holders of U.S. Treasury bills. “A run on these stablecoins could trigger a fire sale of their reserve assets, which could affect the functioning of U.S. Treasury markets and lead to a broader financial crisis, according to the report. The ECB's stance echoes concerns expressed recently by one of their board members, Dutch National Bank (DNB) Governor Olaf Sleijpen, one of the bank's decision-making members. The analysis isn't without controversy. In October, Coinbase Chief Policy Officer Faryar Shirzad, wrote that "full-reserve backing makes stablecoins safer than banking”. He also said stablecoin broader adoption reinforces financial stability. ECB Stablecoins More For You Protocol Research: GoPlus Security By CoinDesk Research Nov 14, 2025 Commissioned by GoPlus What to know : As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M. GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month. Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B. 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