# Where Stablecoin Reserves Sit Becomes a Regulatory Fault Line

International standard-setters and host-country regulators will keep treating the location of stablecoin reserves as a run and stability risk separate from how fully a stablecoin is backed. That pushes toward requirements to hold reserves locally or ring-fence them, which split global stablecoins into jurisdiction-specific pools and raise issuers' costs.

- Conviction: 35 / 100 (forming)
- Horizon: Emerging (watchlist)
- Tracking since: 2026-10-13T00:00:00.000Z
- Last updated: 2026-10-13T06:30:27.977Z
- Canonical: https://polylog.news/crypto/trends/stablecoin-reserve-location-risk
- Publisher: Polylog
- Affected regions: Europe, United States

## Recent evidence

- [confirms] Financial Stability Board Warns Fully Reserved Stablecoins Can Still Face Runs When Reserves Sit in the Wrong Country (2026-10-13): A Financial Stability Board report going to G20 officials on October 15 warns that even fully reserved stablecoins can face runs when their reserves sit in a different country from their holders.