BIS WARNS AI-DRIVEN MARKET MOMENTUM IS BECOMING VULNERABLE The Bank for International Settlements says the AI-driven equity rally is showing growing vulnerability as investors question future profitability and leverage rises across major technology firms. BIS said tech-sector borrowing exceeded $1 trillion by 2025, while stressing markets currently show no overall signs of stress. Why markets care: the warning links stretched AI valuations and opaque financing directly to rising financial-stability and bond-market risks.

LATEST: 🏦 A new BIS paper finds that when banks raise deposit rates, stablecoin growth slows — evidence the two are partial substitutes — with the effect stronger for USDC than USDT.

The head of the BIS, the central bank for central banks, Pablo Hernández de Cos said Friday that stablecoins, in their current form, aren't a credible means of payment at scale, and that tokenized bank deposits are the better path. A perfectly reasonable thing to say when your shareholders are central banks and the alternative keeps deposits inside the banking system.

LATEST: 🏦 A BIS-led project with 40+ financial institutions found tokenized central bank reserves and deposits could significantly cut settlement times and costs in cross-border payments.