“Such deposits can be susceptible to large and rapid inflows as well as outflows, when end customers react to crypto-asset-sector-related market events, media reports, and uncertainty,” the regulators said, also specifically flagging stablecoin reserves deposited at banks, which they said can be volatile during “unanticipated stablecoin redemptions or dislocations in crypto-asset markets.”
Source: https://www.coindesk.com/policy/2023/02/23/us-banking-regulators-warn-banks-about-crypto-liquidity-risks/?utm_medium=referral&utm_source=rss&utm_campaign=headlines