ECB’s Wake-Up Call: Stablecoins Could Trigger Widespread Economic Ripples

Quick Info

The European Central Bank (ECB) says that stablecoins have grown to more than $280 billion around the world, but they are still not very popular in the euro area.
Even though it hasn’t caught on much in Europe yet, rapid growth could lead to “spillover risks” if a big sell-off or run happens, which could mess up traditional finance.
Experts at the European Central Bank say that global rules like the G20 roadmap are needed to keep an eye on and lessen these new threats.

Do stablecoins make Europe less financially stable?

They can cause volatility if their values sharply deviate from underlying asset prices or if investors withdraw funds rapidly.

Read our Financial Stability Review to find out how regulation can help.
— European Central Bank (@ecb) November 24, 2025

Stablecoins, which are digital assets that are meant to keep their value stable like the U.S. dollar, are becoming very popular all over the world. You can think of them as safe links between regular money and the crazy world of cryptocurrencies. The ECB isn’t happy about this growth, though; it’s waving a warning flag.

The bank’s new report says that these coins, which are mostly made up of Tether’s USDT and Circle’s USDC, are now worth more than $280 billion on the market.
Right now, most people use them for crypto trading, but their connections to regular banks could cause problems if things go wrong.

Imagine this: if investors suddenly freak out and sell off a lot of stablecoins, issuers might have to quickly sell off reserves like short-term bonds. That could cause a lot of trouble in the bond markets, raise interest rates, and even make central banks change their policies in ways they didn’t expect.
The ECB says that this “run” scenario isn’t just a theory; it’s a real risk as stablecoins become more common in global finance.

Europe’s share of the pie is very small, and low adoption keeps immediate threats at bay. The eurozone feels a little safer because of rules like the Markets in Crypto-Assets (MiCA) framework.
But the bank says to keep a close eye on them, especially since most stablecoins depend on eurozone banks to keep their value stable.

Stablecoins aren’t sticking to one lane; they’re moving quickly across borders. The ECB says that USDT and USDC control 90% of the market. If there is instability, these links could spread around the world.
One important thing to remember is that these coins get their strength from traditional systems. If one of those systems breaks down, it could hurt banks and economies.

As an analyst, I think this is a good time for a push. Stablecoins promise to make payments and trading more efficient, but their speed could make shocks worse in ways we haven’t fully tested yet. Regulators should push for global rules that work together now, before adoption goes through the roof.