Stablecoin issuers competing for assets in the short-term financing 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 monetary funds created for the sole purpose of accessing its overnight reverse repo facility, or ON RRP, were deemed ineligible as counterparties. That means stablecoins, which seek to store cash in liquid assets and cannot access Federal Reserve facilities, will likely have to compete with the $5.64 trillion money market fund industry for assets like bills. Treasury, which could push those rates below the offer level at the RRP. โ currently 5.3%.
