Riksbanken Issues Financial Stability Warnings on Stablecoins and Stock Market Valuations

Riksbanken has raised significant concerns about financial stability risks arising from two key sources: the rapid expansion of stablecoins globally and the high valuations of stock markets worldwide. These warnings come amidst growing global attention to emerging risks in the financial sector.

According to a recent report, stablecoins—cryptocurrencies pegged to traditional currencies—are experiencing swift growth globally. Riksbanken warned that the rapid pace of development in the stablecoin market could lead to substantial financial risks. The bank emphasized that the fast expansion and emerging complexity of this market could challenge the overall stability of the financial system if left unchecked (Source ID: 141732).

In addition, Riksbanken’s latest financial stability report highlights concerns about the lofty valuations in global stock markets. Governor Erik Thedéen pointed out that current stock prices largely reflect favorable economic conditions, including high corporate profits and low credit losses. However, he cautioned that these high valuations carry risks of destabilization, potentially threatening broader financial stability. Thedéen also noted that recent clarifications regarding tariff rates may provide some positive influence toward stabilizing the markets (Source ID: 142830).

These dual warnings illustrate Riksbanken’s vigilance in monitoring emerging vulnerabilities amid evolving financial landscapes. The risks posed by rapidly scaling stablecoins and overvalued equities underscore the bank’s call for heightened awareness and prudent regulatory oversight to safeguard Sweden’s economy and global financial well-being.

As of November 14, 2025, Riksbanken continues to assess these risks, emphasizing the importance of transparent market developments and robust risk management practices to mitigate future shocks.