The Federal Reserve has published a FEDS paper on a specific fragility in digital money: even a token backed by perfectly safe reserves can still face run dynamics. The paper was published in June 2026 and last updated on 2 June 2026. For the stablecoin market, the message is important: reserve quality matters, but it is not the only source of risk in digital payment infrastructure.

The authors argue that digital money separates settlement trust from a traditional institution and shifts part of that trust to decentralised verification. The cost of this verification is paid through network fees. As adoption grows, the network becomes more useful, but congestion can raise transaction costs and make redemption more expensive or uncertain exactly when users want to exit.

• safe reserves do not eliminate technological liquidity risk;
• network effects make digital money more useful as adoption rises;
• congestion and gas fees can make redemptions more costly under stress;
• users’ expectations can reinforce run dynamics even without losses in reserves.

The practical takeaway for crypto users is straightforward: evaluating a stablecoin should not stop at the reserve portfolio. It is also necessary to understand issuance and redemption mechanics, supported networks, on/off-ramp liquidity and what happens when transaction fees spike. If users believe that exiting later may be slower or more expensive, they have an incentive to leave earlier.

For exchange services and clients, this is another reason to assess infrastructure as well as the issuer brand. For larger operations, users should consider the transfer network, liquidity availability, AML/KYC requirements and possible delays during high-load periods. On the Obmin.me exchange page, users can choose directions for crypto and stablecoin exchange, while operational checks are described in the AML/KYC policy and FAQ.

Source: Federal Reserve, The Fragility of Perfectly Safe Digital Money.