Ref: FSD-2023-001
Verified: September 10, 2026
Stablecoin Stability: Lessons from the $12 Trillion Repo Market for Digital Asset Integration in Banking
Executive Liquidity Summary
"This directive outlines a strategic framework for stablecoin issuers and banks to collaborate, leveraging repo market principles to strengthen stablecoin stability, thereby fostering a more robust digital financial infrastructure that supports SME lending."
The stablecoin ecosystem can enhance its resilience and trustworthiness by adopting the risk management, collateral quality, and transparency standards of the $12 trillion repo market, which in turn can accelerate the digital transformation of banks and expand credit access for SMEs, as envisioned by the PSD2-driven causal chain.