Making Money While Managing the Risks

[cryptohog]

Moody’s warns that stablecoin growth could erode central banks’ control and trigger “cryptoization.” But regulation is catching up, creating winners and losers.

Investor playbook:

Stick to regulated issuers. Projects under MiCA, Singapore’s tiered rules, or the U.S. GENIUS Act are less likely to face sudden crackdowns.

Diversify across currencies. Euro- and won-backed stablecoins offer exposure beyond the U.S. dollar.

Think second-order effects. As deposits shift from banks to stablecoins, fintechs offering yield, custody, and compliance may see a windfall.

[Nahid Hossen]

Moody’s is right—rapid stablecoin growth could challenge central bank control.

[Abdul Khan]

Regulation will decide which stablecoin projects thrive and which fade out.