The Financial Stability Board (FSB) has warned that stablecoins could face redemption crises during periods of market stress if reserves become inaccessible across borders, even when those reserves are fully backed.
In an Oct. 12 report, the global financial watchdog said stablecoin issuers that operate through affiliated entities in different countries could struggle to meet concentrated withdrawal demands when their reserve assets are held elsewhere. The structure of these cross-border arrangements, the FSB noted, creates a vulnerability that persists regardless of whether reserves fully cover outstanding tokens.
The warning comes ahead of an Oct. 15 meeting of G20 finance ministers and central bank governors, as regulators examine growing risks tied to a stablecoin market valued at approximately $300 billion in mid-2026. Around 99% of that value is pegged to the US dollar.
