Global stablecoins have a reach and use across multiple jurisdictions and could become systemically important in one or more of them. These characteristics may limit the ability of a single jurisdiction alone to fully assess or address potential cross-border vulnerabilities. Moreover, the activities involved in operating a global stablecoin may span several types of entities and fall under the oversight of multiple national authorities.
This note summarises ongoing monitoring work at the FSB on global stablecoin arrangements. In particular, it includes an analysis of the structure of global stablecoin arrangements, the potential propagation of vulnerabilities, and the metrics that could support financial stability monitoring. It also looks at the data currently available for financial stability monitoring of stablecoin activities, assessing the sources as well as the benefits and limitations of these data sources.
