Stablecoins under Stress in a National Economy: Transaction-Level Evidence from Austrian Crypto-Asset Service Providers

• URL: http://arxiv.org/abs/2607.08524v1
• Date: Thu, 09 Jul 2026 14:19:14 GMT
• Title: Stablecoins under Stress in a National Economy: Transaction-Level Evidence from Austrian Crypto-Asset Service Providers
• Abstract summary: We use a regulatory registry that directly identifies the on-chain addresses of all crypto-asset service providers (CASPs) registered in Austria.<n>We reconstruct on-chain transaction activity across Bitcoin, Ether, USDC, and USDT through May 2025.<n>We find that Austrian CASPs intermediate roughly USD 30 billion with external counterparties and are integrated globally rather than domestically.
• Score: 0.21550839871882022
• License: http://creativecommons.org/licenses/by/4.0/
• Abstract: Cryptoassets are increasingly entangled with the traditional financial system, and how this activity integrates into national economies and behaves under stress bears on financial stability and the design of public digital money. However, blockchain pseudonymity and the lack of geographic identifiers force existing work to rely on indirect proxies to infer and locate market participants. Here we use a regulatory registry that directly identifies the on-chain addresses of all crypto-asset service providers (CASPs) registered in Austria, reconstructing their on-chain transaction activity across Bitcoin, Ether, USDC, and USDT through May 2025, and separating retail-like from institutionally mediated flows. We find that Austrian CASPs intermediate roughly USD 30 billion with external counterparties and are integrated globally rather than domestically. In value, this activity is dominated by a few institutional counterparties; in number, by retail-like ones. Around three major shocks, the Terra-Luna collapse, the FTX bankruptcy, and the Silicon Valley Bank failure, the two groups respond through different mechanisms, and stablecoins do not act as a uniform safe haven. The clearest case is SVB, where retail-like deposits and institutional withdrawals are consistent with USDC's two-tiered redemption mechanism. These patterns are invisible in aggregate data. Registry-based, transaction-level measurement thus offers a reproducible, cross-jurisdictional basis for monitoring how cryptoasset markets transmit risk.

Related papers

• Defending the Peg: Real-Time Dynamic Protection and Anomaly Detection in DeFi Stablecoins [1.6405153080101806]
  Current research on stablecoin smart contract security faces challenges such as a lack of domain-specific targeting and the obsolescence of static defense models.<n>This paper systematically analyzes common attack vectors in stablecoin environments and proposes a practical, real-time dynamic defense architecture.
  arXiv  Detail & Related papers  (2026-08-26T10:21:10Z)
• Balancing Privacy and Compliance in DeFi: A Zero-Knowledge-Based Auditable Cross-Chain Framework [1.235954230370251]
  Cross-chain transactions face a conflict between user privacy and regulatory compliance.<n>This research proposes an auditable cross-chain framework that integrates three building blocks.
  arXiv  Detail & Related papers  (2026-08-15T15:19:10Z)
• Skillsets on the Chain: A Blockchain-based Zero-Trust Framework for Agentic AI Networking [41.895053158170136]
  Agentic AI networking (AgentNet) systems rely heavily on third-party skillset implementations and distributed multi-agent collaboration.<n>This paper proposes TrustAgentNet, a dual-tier blockchain-secured zero-trust framework.
  arXiv  Detail & Related papers  (2026-07-31T00:24:06Z)
• When HTTP 402 Meets the Blockchain: Risks on Emerging x402 Payments [53.795332613020946]
  x402 is an emerging payment protocol for Web APIs and autonomous AI agents.<n>We present the first systematic study of authorization correctness and execution safety in current facilitator-mediated x402 deployments in the wild.<n>We derive four new attack vectors, including Free Shopping, Asset Theft, Service Denial, and Gas Abuse.
  arXiv  Detail & Related papers  (2026-07-21T19:45:13Z)
• StableAML: Machine Learning for Behavioral Wallet Detection in Stablecoin Anti-Money Laundering on Ethereum [1.6492745888221318]
  Global illicit fund flows exceed an estimated $3.1 trillion annually, with stablecoins emerging as a preferred laundering medium due to their liquidity.<n>This study analyzes an dataset and uses behavioral features to develop a robust AML framework.<n>By automating high-precision detection, we propose an approach that effectively raises the economic cost of financial misconduct without stifling innovation.
  arXiv  Detail & Related papers  (2026-02-19T21:13:39Z)
• TradeTrap: Are LLM-based Trading Agents Truly Reliable and Faithful? [44.01987401527335]
  TradeTrap is a unified evaluation framework for systematically stress-testing both adaptive and procedural autonomous trading agents.<n>It targets four core components of autonomous trading agents: market intelligence, strategy formulation, portfolio and ledger handling, and trade execution.<n>Experiments show that small perturbations at a single component can propagate through the agent decision loop and induce extreme concentration, runaway exposure, and large portfolio drawdowns.
  arXiv  Detail & Related papers  (2025-12-01T23:06:42Z)
• On-Chain Decentralized Learning and Cost-Effective Inference for DeFi Attack Mitigation [4.37137147573556]
  Billions of dollars are lost every year in DeFi platforms by transactions exploiting business logic or accounting vulnerabilities.<n>We present the first decentralized, fully on-chain learning framework that: (i) performs gas-prohibitive computation on Layer-2 to reduce cost, (ii) propagates verified model updates to Layer-1, and (iii) enables gas-bounded low-latency inference inside smart contracts.
  arXiv  Detail & Related papers  (2025-10-15T18:58:34Z)
• Bubble, Bubble, AI's Rumble: Why Global Financial Regulatory Incident Reporting is Our Shield Against Systemic Stumbles [29.86669983369923]
  Current AI incident databases, reliant on crowdsourcing or news scraping, systematically over-look capital market anomalies.<n>We propose a regulatory-grade global database that synthesises post-trade reporting frameworks with proven incident documentation models from healthcare and aviation.<n>We call for immediate action to strengthen risk management and foster resilience in AI-driven financial markets against the volatile "cauldron" of AI-driven systemic risks.
  arXiv  Detail & Related papers  (2025-09-30T12:01:25Z)
• Bitcoin Cross-Chain Bridge: A Taxonomy and Its Promise in Artificial Intelligence of Things [24.53044980351272]
  Bitcoin's limited scripting capabilities and lack of native interoperability mechanisms have constrained its integration into the broader blockchain ecosystem.<n>This paper presents a comprehensive taxonomy of Bitcoin cross-chain bridge protocols, systematically analyzing their trust assumptions, performance characteristics, and applicability to the Artificial Intelligence of Things (AIoT) scenarios.
  arXiv  Detail & Related papers  (2025-09-12T17:10:46Z)
• Banking 2.0: The Stablecoin Banking Revolution -- How Digital Assets Are Reshaping Global Finance [0.0]
  Stablecoins are the most significant evolution in banking since the abandonment of the gold standard.<n>They seamlessly integrate cryptocurrency innovation with traditional finance infrastructure.<n>This transformation rivals artificial intelligence as the next major disruptor in the financial sector.
  arXiv  Detail & Related papers  (2025-08-15T11:05:16Z)
• SoK: Stablecoins for Digital Transformation -- Design, Metrics, and Application with Real World Asset Tokenization as a Case Study [2.8464206895119437]
  As fiat-referenced and programmable assets, stablecoins provide low-latency, globally interoperable infrastructure for payments, decentralized finance, DeFi, and tokenized commerce.<n>Despite this momentum, academic research remains fragmented across economics, law, and computer science, lacking a unified framework for design, evaluation, and application.<n>This study synthesizes cross-disciplinary literature to construct a taxonomy of stablecoin systems based on custodial structure, stabilization mechanism, and governance.
  arXiv  Detail & Related papers  (2025-08-04T13:27:16Z)
• Transaction Profiling and Address Role Inference in Tokenized U.S. Treasuries [5.00898007095729]
  Tokenized U.S. Treasuries have emerged as a prominent subclass of real-world assets (RWAs)<n>This paper conducts a quantitative, function-level dissection of U.S. Treasury-backed RWA tokens across multi-chain networks.
  arXiv  Detail & Related papers  (2025-07-20T03:54:06Z)
• Your Trust, Your Terms: A General Paradigm for Near-Instant Cross-Chain Transfer [26.61748905524824]
  We introduce the Delegated Ownership Transfer (DOT) paradigm to enable secure, high-performance cross-chain payments.<n>DOT decouples key ownership from value ownership to enable secure, high-performance cross-chain payments.<n>Our prototype shows that cross-chain payments complete in under 16.70 ms and atomic swaps in under 33.09 ms, with costs fully decoupled from Layer-1 gas fees.
  arXiv  Detail & Related papers  (2024-03-22T13:21:09Z)
• Understanding the Security Risks of Decentralized Exchanges by Uncovering Unfair Trades in the Wild [28.63088626240589]
  DEX, or decentralized exchange, is a prominent class of decentralized finance (DeFi) applications on blockchains. This paper presents the first large-scale empirical study that uncovers unfair trades on popular DEX services.
  arXiv  Detail & Related papers  (2024-01-21T17:25:57Z)
• Regulation conform DLT-operable payment adapter based on trustless - justified trust combined generalized state channels [77.34726150561087]
  Economy of Things (EoT) will be based on software agents running on peer-to-peer trustless networks. We give an overview of current solutions that differ in their fundamental values and technological possibilities. We propose to combine the strengths of the crypto based, decentralized trustless elements with established and well regulated means of payment.
  arXiv  Detail & Related papers  (2020-07-03T10:45:55Z)

This list is automatically generated from the titles and abstracts of the papers in this site.

This site does not guarantee the quality of this site (including all information) and is not responsible for any consequences.