The Financial Stability Board said global stablecoins could transmit liquidity, legal and operational stress across borders, while fragmented oversight may complicate crisis management. Its 12 October report put the market at about $300 billion in mid-2026, little changed from a year earlier. It said 99% of value was pegged to the US dollar. The report called for stronger monitoring, cross-border cooperation and information-sharing rather than announcing a binding rule.
The note was submitted alongside FSB chair Andrew Bailey’s letter to G20 finance ministers and central bank governors before their 15 October meeting. It builds on the board’s 2023 recommendations and its 2025 review of their implementation. The IMF separately estimated in August that the market had stayed near $300 billion after nearly tripling between 2021 and 2025. Both institutions said dollar-linked instruments could have particular consequences for emerging economies, including currency substitution and pressure on domestic financial intermediation.
DATA GAPS COMPLICATE CROSS-BORDER OVERSIGHT
The FSB said stablecoin issuers may not know who holds their liabilities or where redemption demand will emerge because tokens circulate around the clock on pseudonymous public networks. Reserve assets and legal protections, however, remain anchored in particular jurisdictions and market operating hours. That mismatch could accelerate sell-offs and strain a peg if redemptions outpace the issuer’s ability to liquidate reserves.
Authorities rely heavily on private data compilers that use proprietary methods to filter and classify blockchain activity. The board said variations in coverage, transparency and methodology can weaken comparability and make the geographic distribution of holders and flows difficult to establish. It proposed monitoring market depth, liquidity, holdings, redemptions and reserve assets across jurisdictions.
COOPERATION WILL SHAPE THE NEXT REGULATORY PHASE
Multi-issuer arrangements add another layer of risk because affiliated entities may share liability while holding reserves separately. Redemption demand could concentrate on one entity even when reserves sit elsewhere, and cross-border rebalancing could fail during stress. The FSB also warned that lightly regulated locations may create opportunities for regulatory arbitrage and complicate insolvency planning.
The board said authorities could develop common metrics, improve use of existing data and explore industry practices for on-chain and off-chain reporting. It also called for implementation of its 2023 recommendations to be supported by stronger cross-border cooperation and information-sharing. The next public milestone is the G20 finance ministers and central bank governors meeting on 15 October, where the FSB’s note will form part of the financial-stability agenda.