The Financial Stability Board (FSB), an international body that monitors risks to the global financial system and coordinates regulatory and supervisory cooperation among national financial authorities, released a report on October 12 on cross-border vulnerabilities in global stablecoins and financial stability monitoring.
According to the report, the stablecoin market was worth about $300 billion in mid-2026, nearly unchanged from a year earlier, and 99% by market value was pegged to the U.S. dollar. The FSB said global stablecoins and national regulatory frameworks remain untested under severe market stress and insolvency. Tokens trade around the clock, but redemption into cash and reserve-asset management are affected by financial-market operating hours and settlement procedures. If redemptions cannot keep pace with sales, the peg could come under pressure. It added that fire sales of reserve assets and withdrawals of bank deposits to fund redemptions could also transmit shocks to traditional financial markets.
The report also examined structures in which affiliates in several countries jointly issue the same stablecoin and hold reserves across jurisdictions. If holders can demand redemption from any affiliate, requests could become concentrated at an entity in one country. If that entity cannot meet redemptions with the reserves it holds, it may need to draw on reserves held by affiliates in other countries, but moving and using those assets across borders could face constraints during a crisis. If it is also difficult to determine where holders are located, it may be unclear which issuer bears the redemption obligation and what rights holders may assert. The FSB also noted that it could be difficult to determine which country's insolvency law applies.
The report is not legally binding and did not provide a timetable for individual tasks or specific implementation plans by country.