Do Stablecoins Used as Collateral for Margin in Crypto Futures Introduce New Risks?

Yes, using stablecoins as collateral introduces risks primarily related to the stablecoin's peg stability and regulatory status. If the stablecoin loses its dollar peg (de-pegs), the collateral value decreases, potentially leading to unexpected liquidations.

Furthermore, regulatory uncertainty around stablecoins could impact their usability as collateral.