The TerraUSD crash in May reaffirmed the limitations of stablecoins dependent on arbitrage to maintain a stable value. Countries around the world are now moving to regulate stablecoins through various approaches reflecting differences in their respective interest rate environments and stablecoin adoption rates. Against such a backdrop, regulators may turn their attention to stablecoin ownership through currently unregulated self-custody wallets.

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About the Author

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  Ken Katayama

  Senior Chief Researcher

  Financial Market & Digital Business Research Department