The Bank for International Settlements (BIS) has identified the $320 billion stablecoin market as a significant threat to global financial stability. According to substack.com, the central bank group expressed concern over redemption frictions and price deviations from par in major tokens like USDT and USDC.
BIS General Manager Pablo Hernández de Cos warned that slow global rulemaking could lead to regulatory arbitrage. This warning follows the simultaneous release of major stablecoin frameworks in the United States and Europe.
Institutional shift toward regulation
A consortium of twelve European banks, operating under the name Qivalments, is preparing to launch a MiCA-compliant euro stablecoin. The group includes BBVA, BNP Paribas, ING, and UniCredit. The project uses Fireblocks infrastructure and will be regulated by the Dutch Central Bank, with a target launch in the second half of 2026.
While the current euro-pegged stablecoin market represents only $650 million, the move signals a push toward regulated infrastructure. This shift is mirrored in the private sector, where Pornhub recently notified creators it is switching all payouts from USDT to USDC. The platform cited reliability and regulatory alignment as the primary reasons for the change.
In the United States, the FDIC Board approved proposed rules to implement the GENIUS Act. The new regulations require permitted payment stablecoin issuers to redeem tokens within two business days and meet strict reserve custody standards. The rule clarifies that stablecoin reserve deposits do not carry FDIC insurance for token holders, distinguishing them from tokenized deposits.
New settlement technology is also accelerating cross-border payments. Circle recently launched CPN Managed Payments, a platform allowing banks to settle transactions in USDC without managing crypto infrastructure. During a demonstration, CEO Jeremy Allare settled $68 million across eight entities in under 30 minutes, significantly faster than the typical one-to-three-day window for wire transfers.
Recent data shows the stablecoin market cap has exceeded $317 billion, marking a 50% increase since early 2025. This growth has placed the sector in a position where it can directly influence Treasury markets.
