The Financial Stability Board (FSB) released a report stating that global stablecoins have not yet been tested under severe market stress or insolvency scenarios. The G20 regulatory body highlighted significant cross-border vulnerabilities, noting that multi-issuer structures could concentrate redemption demand on a single entity while reserve assets remain in other jurisdictions. Additionally, the 24/7 trading nature of stablecoins versus limited reserve asset liquidity creates depegging risks during bank runs, potentially transmitting shocks to traditional markets through forced asset sales and deposit outflows. The FSB recommends strengthening cross-border information sharing, improving monitoring data, and establishing advance resolution arrangements for stablecoin distress or failure. The report also notes that regulatory frameworks across countries are advancing at different paces, creating uncertainty regarding applicable insolvency rules when issuers fail. These non-binding recommendations were issued ahead of the October 15 G20 Finance Ministers and Central Bank Governors meeting.