FSB report flags stablecoin stress and cross-border insolvency risks

The Financial Stability Board says global stablecoins have not been tested under severe stress or insolvency, while national rules are developing at uneven speeds. Stablecoin capitalization grew from about $206 billion in early 2025 to $306 billion. The FSB warns that multi-issuer structures and scattered reserves make it unclear which country's insolvency rules would apply.

• Stablecoin market cap rose from $206 billion to $306 billion since early 2025
• In multi-issuer schemes, reserves sit in different jurisdictions while redemption demand can hit one issuer
• If an issuer fails, it is unclear which country's insolvency rules would govern claims
• The FSB recommendations are not legally binding and rely on national implementation