Credit risk: There is a risk that the issuer or borrower of the underlying collateral may default, leading to a loss of the collateral and a drop in the value of the stablecoin.

Market risk: Market conditions can cause fluctuations in the value of the underlying assets, which can affect the stability of the stablecoin.

Technological risk: The use of technology, such as blockchain or smart contracts, can introduce technical challenges or security vulnerabilities that can affect the stability of the stablecoin.

Operational risk: The stablecoin issuer must have robust systems and processes in place to manage the day-to-day operations of the product, including the handling of collateral, the distribution of yields, and the resolution of disputes.

Legal risk: The regulatory landscape for stablecoins is rapidly evolving, and there may be legal and regulatory challenges that can affect the stability and market acceptance of the product.

These risks must be carefully assessed and managed to ensure the stability and success of a stablecoin product for institutional investors.
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