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Could Instant Payments or Stablecoins Be the Answer to 24/7 Margin Calls?

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Abstract

“Time equals risk” is an adage that policymakers and market participants have invoked for decades in favor of shortening the settlement cycle in financial markets.1 Today it has taken on new significance as U.S. market regulators consider opening segments of the securities and derivatives markets to 24/7 trading. Many have highlighted that one challenge to expanding trading hours over the weekend would be the current lack of availability of large-value payment systems like Fedwire to manage related settlement risks.

Suggested Citation

  • David DeCarlo, 2026. "Could Instant Payments or Stablecoins Be the Answer to 24/7 Margin Calls?," Chicago Fed Letter, Federal Reserve Bank of Chicago, vol. 519, February.
    • Handle: RePEc:fip:fedhle:103769
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    File URL: https://www.chicagofed.org/-/media/publications/chicago-fed-letter/2026/cfl519.pdf?sc_lang=en
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    More about this item

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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