ECB Official Warns US Stablecoin Growth Could Trigger Global Market Risks

Olaf Sleijpen, a top ECB official and Dutch Central Bank governor, has expressed concerns about the rapid growth of US stablecoins, which have surged by 48% to over $300 billion in 2025. This growth follows new US regulations allowing privately issued stablecoins and initiatives like VISA's fiat-to-stablecoin pilot program.

Sleijpen warned that if stablecoins continue to grow at the current rate, they could become systemically relevant, potentially destabilizing financial markets.
The increase in US stablecoins could force the European Central Bank (ECB) to revise its monetary policies.
Sleijpen highlighted risks such as undermining local policymakers' control over interest rates and money supply due to reliance on US-denominated stablecoins.
The ECB is developing blockchain-based euro settlements, planned for launch by 2026, to address these challenges.
Nobel economist Jean Tirole noted potential government bailouts if stablecoins unravel.

The ECB's recent policy outlook shows slight improvement, with stable borrowing costs after eight quarter-point reductions, reducing the main rate to 2%. Investors see a low probability of further cuts soon.