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Stablecoin Issuers Risk Disrupting Funding Markets, JPMorgan Says
Stablecoin issuers vying for assets in the short-term funding space risk disrupting the market after the Federal Reserve limited access to a key facility, according to JPMorgan Chase & Co. The central bank decided in April that money funds created for the sole purpose of accessing its overnight reverse repo facility, or ON RRP, were deemed ineligible as a counterparty. That means stablecoins, seeking to park cash in liquid assets and unable to access the Fed facility, will likely have to compete with the $5.64 trillion money-market fund industry for assets like Treasury bills, potentially pushing those rates ... (full story)