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Update from the ECB on stablecoins published as part of the Financial Stability Review (November 2025).

"Stablecoins on the rise: still small in the euro area, but spillover risks loom"

Key takeaways:

• Stablecoins have captured widespread attention in recent months on account of their rapid growth, raising potential concerns for financial stability.
• Fuelled by broadening investor interest and global regulatory developments, the combined market capitalisation of all stablecoins has reached an all-time high - exceeding USD 280 billion, accounting for roughly 8% of the total crypto-asset market.
• At present, crypto trading constitutes by far the most important use case for stablecoins - around 80% of all trades executed globally on centralised crypto trading platforms involve stablecoins, which shows that stablecoins have become essential for the functioning of the crypto-asset ecosystem.
• Stablecoins may pose financial stability risks through their inherent vulnerabilities and their interconnectedness with traditional finance.
• Significant growth in stablecoins could cause retail deposit outflows, diminishing an important source of funding for banks and leaving them with more volatile funding overall.
• Global discrepancies across jurisdictions constitute the primary source of stablecoin risk for the euro area.
• Currently, financial stability risks stemming from stablecoins are limited within the euro area, but the rapid growth justifies close monitoring, while risks stemming from cross-border regulatory arbitrage should be resolved.

- Todor