Dark Stablecoins Surge to $5B: The Hidden Threat Crypto Can’t Ignore
CryptoQuant CEO warns of $5B in dark stablecoins—untracked tokens shaking markets. Is your wallet safe?
A shadowy trend is sweeping crypto. On May 11, 2025, CryptoQuant CEO Ki Young Ju revealed a growing concern: “dark stablecoins,” untracked tokens issued by major stablecoin providers, have ballooned to $5 billion in circulation. These coins, often used in dark pool trading, bypass blockchain transparency, making them invisible to most analytics platforms, as reported by crypto.news.
What are dark stablecoins? Stablecoins like USDT or USDC are typically pegged to the US dollar and tracked on public blockchains. But dark stablecoins are issued off-chain or through private channels, often for institutional trades in dark pools—hidden markets where big players trade without public scrutiny. Ju estimates 5% of stablecoin supply, or $5 billion, now operates in this murky space, up 1,400% since 2023. This opacity fuels risks like market manipulation, as seen with Tether’s past $9M seizure by the US DOJ for illicit activity.
Why does this matter? For new investors, dark stablecoins pose a hidden threat. They can distort market dynamics—imagine sudden sell-offs crashing prices without warning. Ju warns this could destabilize major coins like Bitcoin, now at $103,000, or Solana, up 47% recently. It also erodes trust in stablecoins, key to crypto trading, especially as US regulations tighten, like the Genius Stablecoin Bill targeting Tether. On the flip side, dark pools offer institutions privacy, potentially drawing more big money into crypto.
What should you do? Stick to transparent platforms like Coinbase, research stablecoin issuers, and diversify your holdings. The crypto space is evolving fast, but hidden risks can catch anyone off guard.
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NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
