neira(@borjaneira_):Most assume that stablecoins are replicating the role of Eurodollars and expanding the offshore dollar system. This is not the case. In reality, stablecoins primarily substitute for specific layers of the existing system - particularly operating and settlement balances - which can even reduce the credit multiplier in the segments that matter most to the Fed The open question is what happens when new monetary claims are created one layer above the token. This article examines how this new collateral channel actually works, what conditions are required for it to scale, and why its stress dynamics are structurally different from those of the traditional Eurodollar system.

2026.07.07 14:04

Most assume that stablecoins are replicating the role of Eurodollars and expanding the offshore dollar system. This is not the case. In reality, stablecoins primarily substitute for specific layers of the existing system - particularly operating and settlement balances - which can even reduce the credit multiplier in the segments that matter most to the Fed The open question is what happens when new monetary claims are created one layer above the token. This article examines how this new collateral channel actually works, what conditions are required for it to scale, and why its stress dynamics are structurally different from those of the traditional Eurodollar system.