The Hong Kong Monetary Authority wrote a research report on "Assessing Volatility Spillovers from Cryptocurrencies to Traditional Financial Assets: The Role of Asset-Backed Stablecoins", which stated that asset-backed stablecoins play a key role in the encryption ecosystem, but , in extreme cases, the failure of stablecoins or other encrypted assets could lead to large-scale redemptions of asset-backed stablecoins and sell-offs of reserve assets, which could have a significant impact on the traditional financial system. The study concluded with two recommendations that regulators may consider requiring issuers of asset-backed stablecoins to make standardized and regular disclosures about their reserve holdings, which may help regulators assess and compare their liquidity position and potential Liquidity mismatch risk; enhanced liquidity management for asset-backed stablecoins, possibly by limiting the composition of reserve assets and requiring explicit redemption rights, may also help reduce spillover risks.