Fed paper explores stablecoins’ impact on financial system

Researchers say stablecoins could be a ‘digital safe haven’ during volatility, but design choices matter

Draft Fed TLAC rules unclear on structured notes

New research published by the Federal Reserve explores how different structures underpinning stablecoins can impact the financial sector and the wider economy.

Authors Gordon Liao and John Caramichael find a “two-tier” structure, where stablecoins are backed by commercial bank reserves, can both support stablecoin issuance and maintain credit intermediation.

A more radical design, a “narrow-bank” structure, where stablecoins are fully backed by central bank reserves, could be more stable but

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

If you already have an account, please sign in here.

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: