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Sleijpen told the Financial Times that if stablecoins particularly dollar-pegged ones whose issuance has surged to over US $300 billion this year become “systemically relevant”, it could trigger major stress across financial markets. He explained that large-scale redemptions of these tokens might force issuers to liquidate reserve assets like U.S. Treasuries, causing ripple effects through bond markets, liquidity channels and ultimately monetary policy in the euro area.
Why the alarm is real
The stablecoin ecosystem has grown rapidly in 2025, driven by increased issuance in the U.S., where new regulation has made it easier for private-sector stablecoins to thrive. The Dutch central bank governor warned that such growth, if unchecked, could lead to a situation where the issuance and redemption of stablecoins become too large for the ECB’s monetary framework to ignore.
In his words:
“If stablecoins are not that stable, you could end up in a situation where the underlying assets need to be sold quickly.”
That kind of scenario could force the ECB to adjust interest rates not necessarily downward, but potentially upward or sideways to maintain financial stability.
The mechanics and implications
What exactly could happen?
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A large redemption wave in stablecoins would require issuers to offload their backing assets often dollar-denominated government bonds which could increase yields and disrupt global bond markets.
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The euro-area banking and liquidity system might find itself under pressure if safe-asset collateral is eroded, which could affect the monetary transmission mechanism that the ECB uses.
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In that event, the ECB’s usual interest-rate tools may come into play; Sleijpen warned that the bank might have to rethink its rate path in response.
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The fact that these stablecoins are largely U.S.-dollar-backed introduces cross-border risk: euro-area policy may become influenced by developments happening outside the eurozone.
Why this matters now
For years, stablecoins were largely discussed as niche digital-asset innovations or regulatory curiosities. Now, according to Sleijpen, they have the potential to affect monetary policy, which is traditionally the exclusive domain of central banks and government treasuries.
This signals a shift: digital-asset markets are no longer purely speculative or peripheral they are entering the radar of systemic-risk and macro-prudential frameworks.
Potential outcomes & watch-points
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If a stablecoin run occurs and the ECB responds with a rate increase, this could tighten euro-area borrowing costs and slow growth.
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Alternatively, if the ECB acts with a rate cut or support measure, it could trigger inflation concerns or weaken credibility.
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Regulatory reaction will also matter: stricter stablecoin issuance rules (e.g., under the EU’s MiCA regime) could reduce the size or speed of these risks.
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Investors and institutions in crypto should monitor stablecoin deposit levels, redemption patterns and reserve-asset disclosures, because these may become early warning signs for monetary-policy risk.
FAQs
Q1: Who is Olaf Sleijpen and what is his role?
Olaf Sleijpen is the governor of the De Nederlandsche Bank (Dutch central bank) and a member of the Governing Council of the European Central Bank. He speaks with insight into monetary-policy and financial-stability frameworks.
Q2: What exactly is meant by a “stablecoin run”?
A stablecoin run refers to a scenario where large numbers of holders simultaneously redeem stablecoins for fiat currency, potentially forcing issuers to sell underlying reserve assets quickly, creating market stress.
Q3: Why would such a run force the ECB to adjust interest rates?
Because large-scale redemptions could destabilise bond markets, liquidity channels and the monetary-policy transmission mechanism. The ECB might need to act with its interest-rate tool to restore stability.
Q4: How big is the stablecoin market currently?
As of late 2025, surge estimates suggest over US $300 billion in stablecoins, with year-on-year growth of roughly 48%.
(This figure is subject to revision as new data emerges.)
Q5: Does this warning mean the ECB will raise rates imminently?
Not necessarily. Sleijpen’s comments are cautionary they highlight a risk scenario rather than a planned policy change. The ECB remains data-driven and will act based on evolving conditions.
Q6: What should investors or institutions do in light of this warning?
Monitor stablecoin issuance and redemption patterns, track disclosures by issuers, assess exposure to digital-asset reserves and be aware of how monetary-policy risk might tie into crypto-asset landscapes. It may be wise to revisit risk assumptions around stablecoins and fiat-asset overlays.