As the stablecoin market recorded $75.6 trillion in total transaction volume in the past year, Pablo Hernández de Cos, General Manager at the Bank for International Settlements (BIS), opened a fresh chapter on stablecoins.
In a speech at a Bank of Japan seminar on the 20th of April, Hernández de Cos highlighted that despite moments of growth, the stablecoin market cap as of April 2026 was roughly around $315 billion.
The BIS manager sees this market cap as a dwarf version of the $8 trillion held alone in bank deposits in the U.S.
Hernández de Cos added,
Stablecoins have found limited commercial use, such as for firms’ payments within global value chains. Instead, they have primarily served for on-chain trading within the crypto ecosystem.
Global stablecoin regulatory framework
BIS believes that there is a need for “international cooperation” on divergent regulatory stablecoin frameworks across jurisdictions.
If widely adopted in their current form, stablecoins would pose policy challenges in several areas, ranging from credit provision to monetary policy.
Being an early bird to the stablecoin market, Japan has already amended the Payment Services Act in 2022, creating a legal framework in the country around stablecoins. Additionally, in October 2025, Japan launched the world’s first stablecoin pegged to the yen.
Underlying concerns
In less than one year, Japan’s BIS analyzed the undercurrent of the stablecoin market. The bank highlighted that the present stablecoin market faces a ‘singleness’ issue, which makes them unstable during periods of stress.
Additionally, there are ‘interoperability’ concerns, an issue making stablecoins work more like fragmented digital assets than universally accepted money.
All in all, BIS highlighted that stablecoins have the potential to reshape the financial system, but without a strong framework, they inject risks to banks, stability, policy control, and financial integrity.
Notably, BIS also highlighted how Tether’s USDT and Circle’s USDC, the largest US dollar-pegged stablecoins, act more like ‘securities rather than money.’ Cos put it best when he said,
In this respect, they currently operate more like exchange-traded funds than like money.
Other developments around stablecoins
This effort comes at a time when the US has already passed the GENIUS Act in 2025, a framework for stablecoins in the U.S.
Meanwhile, Circle’s CEO Jeremy Allaire also highlighted China’s plan to launch a yuan-backed stablecoin in the next 3-5 years.
Ergo, with different nations leveling up their stablecoin game and many joining the race, Japan’s BIS idea of a coordinated global stablecoin framework looks paramount.
Final Summary
- BIS’s Pablo Hernández de Cos calls for a globally coordinated stablecoin regulatory framework as the stablecoin race intensifies.
- With the GENIUS Act and now with the possible passage of the CLARITY Act, stablecoins look poised to dominate globally.