Analysts at ratings agency Moody's have said the recent decoupling of the USD Coin (USDC) from the US dollar could hinder the development of stablecoins and lead to tighter regulation.
They have said:
"Until now, large fiat-backed stablecoins had shown remarkable resilience, having emerged unscathed from past scandals such as the collapse of FTX."
The agency's specialists have also noted a significant increase in the capitalization of "stablecoins" over the past few years.
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Last March 11, USDC lost its parity with the US dollar after its co-issuer, Circle, announced that it had $3.3 billion in reserves in Silicon Valley Bank (SVB), which had been tapped by the authorities.
Despite the company promising to cover "any shortfall" in stablecoin backing, USDC fully restored parity with the US dollar only after US regulators announced the bailout of SVB depositors.
Moody's has said:
"Given the current market volatility, such a scenario could, in turn, have caused more runs on banks holding Circle's assets, which could have led to the depegging of other stablecoins."