In a recent report, Deutsche Bank analysts highlighted red flags in the stablecoin market, predicting an imminent doom for most stablecoins.
In a recent report, Deutsche Bank analysts highlighted red flags in the stablecoin market, predicting an imminent doom for most stablecoins.
According to the bank’s research, most stablecoins, including Tether (USDT), have questionable credibility, lack transparency, reserve backing, and robust operational controls. This report contrasts Ripple’s stablecoin market value estimation of $3 trillion by 2028.Deutsche Bank’s Report Highlights
After assessing 334 pegged currencies (stablecoins), Deutsche Bank analysts discovered that only 14% have survived until now. In the research note published on May 7, the analysts noted that some stablecoins may survive while many will likely crash.
In the note, Deutsche Bank said most stablecoins lack credibility, backup reserves, and strict operational controls, which is crucial for maintaining stability.
Given the lack of these crucial attributes, Deutsche Bank says the 30% de-page rate witnessed among stablecoins is unsurprising.
