Stablecoin Shocks
2026
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AI-generated summary
This paper analyzes the causal effects of stablecoin adoption on U.S. financial markets, revealing significant impacts on Treasury yields, the dollar, and equity markets.
* Develops novel measures of stablecoin shocks using a daily narrative dataset of stablecoin-specific news.
* Identifies high-frequency movements in stablecoin market capitalization and their impact on financial markets.
* Documents persistent declines in short-term Treasury yields, U.S. dollar depreciation, and spillovers into crypto and equity markets.
Tags: Stablecoin, Financial Markets, Monetary Policy, Cryptocurrency, Economic Impact
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