A new assessment from a major financial institution has brought long overlooked vulnerabilities in the stablecoin ecosystem back into focus.
The report emphasizes that the structure of reserves is central to maintaining trust. If users attempt to exit simultaneously, issuers must hold highly liquid and low risk assets to preserve stability. Otherwise, a token may drift away from its intended peg. Since the project in question is the largest stablecoin in circulation, such evaluations affect not just one issuer but global trading pairs and the entire DeFi infrastructure.
Questions around reserve composition play a major role in the report, stressing that an increasing share of assets outside cash, cash equivalents, and short term Treasury bills heightens fragility. As a result, regulatory frameworks across different regions are defining stricter requirements for high quality liquid assets. Analysts note that this trend will be particularly influential for institutional investors.
The report also suggests that stablecoins with stronger ratings may gain institutional traction. Meanwhile, comments from the issuer preparing a new dollar pegged product have escalated the debate, hinting that the market may be entering a period of clearer regional segmentation.
