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FSB warns stablecoins could trigger redemption crises during stress
The Financial Stability Board said stablecoin risks stem from reserve assets that may be inaccessible across borders, even when issuers hold full reserves.
The Financial Stability Board warned that stablecoins could face redemption crises during market stress if reserve assets are not accessible across borders, according to a report cited by CryptoSlate.
The FSB said issuers that operate through affiliated entities in different countries may struggle to meet concentrated withdrawal demands when reserves are held elsewhere, noting that the warning is tied to an Oct. 15 meeting of G20 finance ministers and central bank governors.
CryptoSlate reports the FSB estimated the stablecoin market at about $300 billion in mid-2026, with 99.0% of value pegged to the US dollar, and pointed to underdeveloped international regulatory coordination for cross-border stablecoin failures.
The FSB also identified vulnerabilities in stablecoins issued by multiple affiliated companies that share liability for the same token while keeping separate reserves, giving holders the ability to redeem through any participating issuer regardless of where the token was originally issued.