Stablecoins, RWA & Tokenization

What are the risks of holding stablecoins?

The main risks of holding stablecoins are depeg risk, issuer and reserve risk, and regulatory risk. A stablecoin can lose its peg if confidence falters or backing is questioned, the issuer may hold reserves that are illiquid or poorly disclosed, and shifting regulation can affect how stablecoins are used or taxed. Counterparty and platform risks also apply, since the token is only as reliable as the entity standing behind it. For instance, a stablecoin can trade below its reference value during market stress. Stability is intended, not assured.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.