Global Regulation Tomorrow

On 12 October 2026, the Financial Stability Board (FSB) published a letter from its Chair, Andrew Bailey, to G20 Finance Ministers and Central Bank Governors, ahead of their meeting on 15 October.

Background

The letter highlights risks to the global financial system, including heightened volatility in sovereign bond markets, vulnerabilities in private credit markets and risks related to artificial intelligence (AI). It is accompanied by a note on global stablecoin arrangements, which summarises ongoing work at the FSB on vulnerabilities related to global stablecoin arrangements along with data for their financial stability monitoring.

Note on global stablecoin arrangements

The note summarises ongoing work at the FSB on vulnerabilities related to global stablecoin arrangements along with data for their financial stability monitoring.

Key messages in the note include:

• The FSB has analysed the cross-border dimension of global stablecoins from a financial stability perspective.

• While global stablecoins are mainly used within crypto-asset markets at present, they could potentially offer benefits for the real economy.

• Global stablecoins can differ from traditional financial assets in their circulation: pseudonymous tokens that are globally accessible and easily transferable 24/7 on secondary markets.

• In the specific ‘multi-issuer’ case, affiliated issuers jointly share liability for a single global stablecoin but hold separate reserves, whose rebalancing may face frictions during stress.

• More broadly, cross-border aspects of global stablecoins can also amplify liquidity mismatches, run risk and operational fragility, while insolvency would raise legal and operational questions.

• The FSB has analysed key stablecoin-related primary data sources, examined relevant data elements that can be derived from these sources, and highlighted important benefits and limitations.

• Stablecoin activity generates abundant data, but several challenges currently limit how effectively it can be used to monitor financial stability vulnerabilities.

• To strengthen stablecoin monitoring, members and relevant authorities could consider three next steps: (i) develop a set of metrics for financial stability monitoring and identify data gaps; (ii) better leverage existing data, including by encouraging cross-border analytical expertise, information sharing and coordination; and (iii) explore possible industry best practices for data collection and compilation on- and off-chain to improve quality and comparability over time.