Stablecoins and risk management: elevating standards for institutional capital markets

As stablecoins grow in profile and importance, regulators have established standards for their use. While these might be considered sufficient for small-value, high-volume payments in retail and individual trading, when it comes to use in institutional capital markets, it is possible that more robust standards are needed.

Incorporating stablecoins into institutional markets requires not just technical accommodation of token-based trading systems, but risk management frameworks calibrated to effectively assess and mitigate the risks these instruments pose. This work is already taking place. But turning institutional risk management policies into market-wide standards will require buy-in from stakeholders across the spectrum of financial market infrastructure providers, market participants like banks and asset managers, stablecoin issuers, ratings agencies and regulators.

This roundtable will explore the risk management frameworks needed to support the safe and scalable integration of stablecoins into institutional capital markets.