Global watchdog warns the $300 billion stablecoin market could face bank runs even with full reserves
The Financial Stability Board (FSB) warned that stablecoins could face redemption crises if, during market stress, reserves become inaccessible across borders. In an Oct. 12 report, the global financial watchdog said stablecoin issuers operating through affiliated entities in different countries could struggle to meet concentrated withdrawal demands when their reserve assets are held elsewhere. The…
