The stablecoin market has grown from about $206 billion at the start of 2025 to $306 billion, most of it pegged to the US dollar. The Financial Stability Board, the G20’s financial watchdog, says that growth has never been tested by severe stress or an insolvency, CoinDesk reported.
Its new report asks for more cross-border information sharing, monitoring and planning for a stablecoin in distress. Andrew Bailey, the board’s chair and governor of the Bank of England, wrote in an accompanying letter that global stablecoin arrangements are inherently cross-border.
The report names several weak points. Rules are developing at different speeds, and cooperation between regulators is described as still in its infancy. Affiliated companies can issue the same token and share liability while holding reserves in different countries, so redemptions could land on one entity while the money sits in another.
Timing is another. Stablecoins trade every hour of the day, while the markets for reserve assets keep set hours. If redemptions cannot keep pace with selling, a token can lose its peg.
The board also notes that holders are pseudonymous, which makes it hard to say whose insolvency rules would apply.
The paper lands days before G20 finance ministers and central bank governors meet on 15 October. Its recommendations are not binding, and members only commit to carrying agreed standards into national law.
Bailey has already warned that international rulemaking on stablecoins has stalled. The report asks for planning for a failure, and it does not say who would run it.
