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DWF Labs partners warn of systemic risks such as stablecoin redemption pressure and reserve management

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2025-04-27 07:18:09
In its latest report, Bitwise revealed that the volume of stablecoin transactions in 2024 just exceeded that of payment giant Visa. However, Andrei Grachev, managing partner of DWF Labs, warned that, despite the rapid growth, widespread stablecoin adoption poses significant systemic risks, such as redemption pressure and reserve management, especially for algorithmic stablecoins or undercollateralized stablecoins. Andrei Grachev advocates a multi-pronged solution that prioritizes real-time on-chain proof of reserves, ideally short-term U.S. Treasury bills or central bank reserves.
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