Ripple Policy Lead Rahul Advani Flags Cross-Border Stablecoin Recognition Gap

Ripple policy lead Rahul Advani said cross-border recognition of regulated stablecoins remains unresolved, a gap he said could leave digital-money markets divided even as issuer rules align across major jurisdictions.

Advani appeared on an Atlantic Council GeoEconomics Center panel about settlement in tokenized markets during the International Monetary Fund and World Bank Group Annual Meetings in Bangkok. Cross-border recognition gaps could recreate market fragmentation on new financial infrastructure.

Banks assess stablecoins by their backing, treatment under Basel Committee capital requirements, around-the-clock liquidity, and compatibility with custody and treasury infrastructure. Stablecoin activity is already in production where those criteria align.

Issuer rules in the United States, the European Union, Singapore, Hong Kong and Japan are increasingly aligned, while cross-border recognition has not kept pace. The U.S. GENIUS Act and the EU’s MiCA framework are among the rules in those jurisdictions.

Dollar stablecoins can serve as a cross-border liquidity layer while local-currency stablecoins can support domestic settlement. Advani’s position was that an onchain system needs both, with room for domestic issuance and well-regulated foreign stablecoins.