The US Federal Reserve has spotlit the risk of market runs on stablecoins in a newly issued report. In a May 9 report on financial stability, the Fed emphasized stablecoins alongside certain money market funds and bonds as areas of risk in the current financial system, specifically funding. "Some types of money market funds (MMFs) and stablecoins remain prone to runs," the Fed's report reads. "Funding risks at domestic banks are low, but structural vulnerabilities persist at some money market funds, bond funds, and stablecoins." The report's timing is notable, as TerraUSD (UST), one of the largest stablecoins and the ... (full story)