The Federal Reserve Bank of New York published a paper titled, "Stablecoins and (​Non)​Crypto Shocks: A 2026 Update." It states, "Stablecoins are digital assets whose value is pegged to that of a fiat currency, typically the U.​S. dollar at a peg of $​1.​00 per token. In a previous blog post, we described the rapid growth of stablecoins through early 2025, highlighted changes in stablecoins' reserve-​asset composition, and examined their reactions to Bitcoin price shocks. In this post, we document the growth of stablecoins since our last post. Then, we examine how shocks from outside the crypto industry can impact the composition of stablecoins' reserve assets. For our case study, we use the 2023 failure of Silicon Valley Bank (​SVB) and its impact on USD Coin (​USDC, issued by Circle), the second-​largest stablecoin by market capitalization." The piece explains, "Since our last post in April 2025, the market capitalization of U.​S. dollar stablecoins has increased by $​71 billion (​30 percent) to about $​308 billion recently.... This period coincides with the passage of the GENIUS Act in July 2025, which established the first federal regulatory framework for payment stablecoins." It continues, "The stablecoin industry remains highly concentrated, with the two largest issuers, Tether (​USDT) and USDC, accounting for over 80 percent of industry assets. The reserve composition of these stablecoins differs significantly: USDC'​s attested reserves consist primarily of cash and short-​term U.​S. government securities. In contrast, corporate bonds, gold bars, Bitcoin, secured loans, and '​other investments' accounted for nearly 24 percent …