---
title: Stablecoin Arbitrage
url: https://www.ml-quant.com/papers/ssrn/4494679/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4494679
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4494679
featured: 2023-07-05
citations: unknown
topic: Crypto & DeFi
---


# Stablecoin Arbitrage

Stablecoin issuers face risk due to illiquid assets and fixed redemption values, worsened by efficient arbitrage.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4494679
- Identifier: SSRN 4494679
- Released: 2023-04-05
- First featured: Quant Letter No. 6 (2023-07-05): https://www.ml-quant.com/issues/2023-07-05/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Crypto & DeFi

## Related

- [The Four Types of Stablecoins: A Comparative Analysis](https://www.ml-quant.com/papers/arxiv/2308.07041/): The study examines the stability of various stablecoins under different conditions, stressing the need to understand their collateral's origin and management to ensure stability and reduce risks.
- [No Questions Asked: Effects of Transparency on Stablecoin Liquidity During the Collapse of Silicon Valley Bank](https://www.ml-quant.com/papers/arxiv/2407.11716/): The study shows that in times of market instability, the transparency of the USDC cryptocurrency leads to quick market responses, while the lack of transparency of USDT acts as a buffer against immediate effects. This suggests that investors may seek safety in less transparent cryptocurrencies during turbulent times.
- [Stablecoins and the Emerging Hybrid Monetary Ecosystems](https://www.ml-quant.com/papers/arxiv/2505.10997/): Stablecoins, valued over USD 200 billion by 2025, are crucial to the global monetary structure, and a combined model of decentralized finance and payment innovation could improve financial inclusivity and resilience in digital ecosystems.
- [Banking 2.0: The Stablecoin Banking Revolution - How Digital Assets Are Reshaping Global Finance](https://www.ml-quant.com/papers/arxiv/2508.11395/): Stablecoins, combining cryptocurrency and traditional finance, are poised to transform the global financial system by addressing flaws in current fiat currencies and promoting a more globally connected financial system.
- [Stablecoins vs. Money Market Funds](https://www.ml-quant.com/papers/ssrn/4593861/): Stablecoins and money market mutual funds have similar reserve asset backing and market microstructure, but stablecoins show larger dispersions from the dollar peg and higher volatility.
- [Stablecoins and Differences in Their Volatilities](https://www.ml-quant.com/papers/ssrn/4818228/): Stablecoins, digital assets tied to stable currencies, do not always deliver on their promise of stability, with volatility varying based on analysis frequency.