The European Central Bank (ECB) has highlighted potential impacts of euro-denominated stablecoins on the sovereign bond market in its latest Macroprudential Bulletin. The report examines how the design and regulatory policies of euro stablecoins might affect asset demand, liquidity, and stress transmission in the eurozone government debt market. As the Markets in Crypto-Assets (MiCA) regulation progresses, European regulators are increasingly focused on the spillover effects of compliant stablecoin reserves on the traditional financial system.