EBA study calls for stablecoin reserves transparency

Researchers on the European Banking Affiliation (EBA) consider the very best method to regulating stablecoins, and thereby mitigating the affect of shocks and runs, will depend on higher disclosure by issuers.

In a paper revealed on August 26, Olli Castren and Riccardo Russo level out that “issuers are incentivised to carry disproportionate quantities of high-yielding however illiquid property of their reserve portfolios”.

The researchers construct on earlier research, which discovered that transparency may both

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