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FSB Stablecoin Guidance Highlights Cross-Border Liquidity Risks

The board also pointed to operational risks and insolvency concerns that could raise complex legal questions for stablecoin operators and users.

A low glass vessel connected to two fuller reservoirs / TokenPost.ai
A low glass vessel connected to two fuller reservoirs / TokenPost.ai

The Financial Stability Board (FSB) highlighted liquidity mismatches, operational fragility and insolvency as risks tied to stablecoins in its guidance.

The guidance warned that stablecoins’ cross-border reach could intensify liquidity mismatches. It also pointed to operational risks and insolvency concerns, which could raise complex legal questions for stablecoin operators and users.

The FSB has also addressed cross-border planning for stablecoin reserve crises.

Riza Dagoc

Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.

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