Deutsche Bank Research analyzed the historical data of fiat-pegged assets, spanning over two centuries, and found that nearly half of these assets failed due to management issues and exposure to macroeconomic volatility. Recent incidents, such as the collapse of Terra USD (UST) and the severing of the USDC peg by Circle, have further highlighted the risks associated with stablecoins.

Customers surveyed by the bank expressed skepticism about the future of stablecoins, with 42% predicting their eventual disappearance. Financial experts also raised concerns about the long-term viability of certain stablecoins, including Tether's USDT, citing issues with collateral transparency.

Deutsche Bank's reputation as a financial industry critic has come into question, given its history of fines and sanctions. Despite this, the bank's analysts have provided insights into the potential risks associated with stablecoins, suggesting that historical data on pegged currencies can help inform the future trajectory of these assets.

Notably, Deutsche Bank had previously forecasted a period of market stagnation following the Bitcoin halving, characterized by relatively stable asset prices.