The Financial Stability Board (FSB) warned that stablecoins could expose gaps in cross-border financial rules during a market crisis and remain untested in such a scenario, and called for more cross-border information sharing, monitoring and planning for stablecoin distress or failure.
The G20’s financial watchdog said in a report that global stablecoins, crypto tokens whose value is pegged to a fiat currency, have not been tested under severe stress or insolvency, while the national regulatory frameworks are developing at different speeds, raising questions over how holders would recover their funds if an issuer went under.
The stablecoin market started 2025 at around $206 billion in capitalization, and has grown to $306 billion. Most of that value is in stablecoins pegged to the U.S. dollar. While much of the value is used mainly to move in and out of crypto investments, the coins could eventually enable faster, cheaper payments, including across borders, the FSB said.
“Global stablecoin arrangements are inherently cross-border, yet national regulations are taking shape at different speeds and cross-border cooperation in this area is still in its infancy,” Chair Andrew Bailey wrote in an accompanying letter.
The report points to higher risks in so-called multi-issuer structures. Affiliated companies can issue the same stablecoin and share liability for it while keeping reserve assets in separate jurisdictions.
If holders can redeem with any issuer in the group, demand could pile up on a single entity, while the needed assets sit elsewhere. Moving those reserves may become harder during a crisis, the FSB warned.
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