Arbitrage Potential Across Borders

[ed]

Scotti highlighted that non-EU subsidiaries of stablecoin issuers might have to move assets to cover EU redemption requests. This could create temporary liquidity imbalances.

Strategy: Monitor liquidity flows and trading volumes. Platforms offering stablecoins with multi-country issuance could experience slight mispricings between regions. Traders could use arbitrage strategies to exploit these differences safely—buy low in one market, sell high in another.

[kelson10]

Good point Multi-country issuance can cause short-term liquidity gaps = arbitrage opportunities