Stablecoin Growth Throws Up New Risks for Regulators, BIS Says

The Bank for International Settlements warned that the rapid expansion of stablecoins — digital tokens usually pegged to fiat currencies — is creating new policy challenges for financial authorities, potentially placing monetary sovereignty in key markets under threat.

Growth in both circulation and integration with traditional finance warrant closer regulatory scrutiny, the BIS said in a bulletin on Friday. It cited a doubling in stablecoins’ overall market value to about $255 billion since 2023, with more than 90% of that value concentrated in two US dollar-pegged tokens.

“Stablecoins’ rising market capitalisation and increasing interconnections with the traditional financial system have ...