BIS Warns Stablecoins Resemble ETFs More Than Money, Calls for Global Regulatory Coordination

Apr 21, 2026

The Bank for International Settlements warns that stablecoins function more like exchange-traded funds than money due to redemption frictions and price deviations, calling for global regulatory coordination across the $300 billion market. BIS General Manager Pablo Hernández de Cos cautions that dollar-pegged stablecoins could undermine monetary policy, trigger financial stress, and hamper illicit finance efforts, with two issuers—Tether's $186 billion USDT and Circle's $78.8 billion USDC—controlling roughly 85% of circulation. The warning comes as adoption grows, with 54% of surveyed adults across 15 countries holding stablecoins and freelancers deriving 35% of earnings from such payments. France's finance minister expresses concern over euro-stablecoin underrepresentation while Circle's CEO predicts China could launch a yuan-backed stablecoin within three to five years despite current regulatory prohibitions.

BIS Warning: Stablecoins Function Like ETFs Rather Than Money

▪The Bank for International Settlements stated that stablecoins function more like investment vehicles than money.

Market Concentration and Regulatory Arbitrage Risks

▪Two stablecoin issuers account for roughly 85% of global stablecoin circulation.
▪Tether's USDT has a market cap of nearly $186 billion.
▪Pablo Hernandez de Cos stated that shifts from bank deposits to stablecoins may be less pronounced if stablecoin holdings remain unremunerated during periods of high interest rates.
▪Circle's USDC has a market cap of approximately $78.8 billion.
▪Total circulation for dollar-pegged stablecoins has exceeded $300 billion.

Growing Global Adoption and Currency Competition

▪A February report from BVNK, Coinbase, and Artemis based on a YouGov survey of 4,658 adults across 15 countries found 54% of respondents held stablecoins in the prior 12 months.
▪Freelancers and marketplace sellers receiving stablecoin payments derived about 35% of their annual earnings from those transfers, according to a February report from BVNK, Coinbase, and Artemis.
▪A February report from BVNK, Coinbase, and Artemis found 56% of respondents planned to acquire more stablecoins.

Perspective of Bank for International Settlements

▪The Bank for International Settlements warned that dollar-pegged stablecoins could pose risks to financial stability.
▪The Bank for International Settlements called for global regulatory coordination to prevent fragmentation across the stablecoin market.

Perspective of Stablecoin users and adopters

▪A majority of 54% of surveyed adults across 15 countries held stablecoins in the 12 months prior to February 2025.
▪Freelancers and marketplace sellers receiving stablecoin payments derived approximately 35% of their annual earnings from stablecoin transfers.
▪56% of surveyed respondents planned to acquire more stablecoins following their February 2025 survey.