The General Manager of the Bank for International Settlements (BIS), Pablo Hernandez de Cos, stated that globally coordinated regulation of stablecoins is crucial to prevent severe market fragmentation, as regulatory differences across jurisdictions could otherwise lead to regulatory arbitrage. He pointed out that stablecoins, typically pegged 1:1 to the U.S. dollar, could undermine monetary and fiscal policies, trigger financial market stress, and hinder efforts to combat illicit financing. Currently, the two largest stablecoins issued by Tether and Circle account for approximately 85% of the global stablecoin circulation, which amounts to $315 billion. He also noted that these two types of stablecoins, in terms of redemption friction and other aspects, are closer to securities than currencies and operate more like ETFs.