FSB urges cross-border planning as stablecoins remain crisis-untested

The Financial Stability Board warned that stablecoins remain untested under severe market stress or issuer insolvency and called for more cross-border information sharing, monitoring and planning for stablecoin distress or failure, in a report released ahead of the G20 finance ministers' Oct. 15 meeting.

• The G20 watchdog said national frameworks are developing at different speeds, leaving open questions about how holders would recover funds if an issuer failed.
• Multi-issuer models can trap reserves in one jurisdiction while redemption demands hit another, and 24/7 token trading versus the limited operating hours of backing markets could force peg losses during a run.
• The stablecoin market has grown from about $206 billion at the start of 2025 to $306 billion.

Chair Andrew Bailey, also governor of the Bank of England, said cross-border cooperation on stablecoins "is still in its infancy." The recommendations are not legally binding, but member jurisdictions tend to commit to applying agreed standards nationally.