Stablecoins under Stress in a National Economy: Transaction-Level Evidence from Austrian Crypto-Asset Service Providers
How stablecoins and crypto firms behaved when markets crashed
When major crypto and traditional finance crises hit, different types of crypto firms responded in opposite ways—retail customers pulled money out while institutional players withdrew funds—and stablecoins didn't protect everyone equally. By tracking actual transaction records from registered Austrian crypto firms, researchers found that during the Silicon Valley Bank collapse, stablecoins revealed hidden two-tier systems where some users couldn't access their money as promised.
As crypto markets grow more connected to banks and mainstream finance, regulators need to spot warning signs early. This direct measurement method—using actual company records instead of guesses—lets governments in any country monitor whether crypto assets could amplify a financial crisis, and whether stablecoins marketed as safe actually hold up when panic hits.