The Transformation of the Global Monetary and Financial System Under Tokenization

... industry, as well as the fact that more than 99% of all stablecoins are denominated in U.S. dollars. At the same time, investing in stablecoins does not protect investors from the risks associated with using this instrument [ 6 ]. First, the liquidity of stablecoins is lower than that of fiat currencies when conducting conversion operations. Second, the inability to verify the actual backing of stablecoins increases the risk that issuers may fail to meet their obligations to DFA holders. Third, the circulation of stablecoins within U.S.-controlled ...