Lorenzo Valente(@LorenzoARK):MiCA’s reserve rules seem backwards. They can force @Tether a roughly $185B, fully reserved stablecoin issuer to place collateral in largely uninsured deposits at European banks, replacing highly liquid reserve assets with bank counterparty risk. Large banks typically hold only around 10–30% of deposits in cash or readily mobilizable liquidity on any given day. Lloyds, for example, held £57B in cash and central-bank balances against £496.5B of customer deposits at year-end 2025, about 11.5%. And outside Europe’s top 20 banks, deposit bases fall below €500B very quickly, meaning substantially less absolute liquidity.

2026.07.10 14:54

MiCA’s reserve rules seem backwards. They can force @Tether a roughly $185B, fully reserved stablecoin issuer to place collateral in largely uninsured deposits at European banks, replacing highly liquid reserve assets with bank counterparty risk. Large banks typically hold only around 10–30% of deposits in cash or readily mobilizable liquidity on any given day. Lloyds, for example, held £57B in cash and central-bank balances against £496.5B of customer deposits at year-end 2025, about 11.5%. And outside Europe’s top 20 banks, deposit bases fall below €500B very quickly, meaning substantially less absolute liquidity.