The New York State Department of Financial Services announced that it has signed a memorandum of understanding with the European Banking Authority to enable the exchange of supervisory and confidential information related to stablecoins. The arrangement is intended to strengthen cross-border oversight of entities engaged in stablecoin activities, support the identification of market trends and risks, and promote the integrity of the stablecoin market. The memorandum applies only to supervised entities’ stablecoin-related activities and not to any other business they may undertake. In setting out the context for the agreement, the department noted that it has supervised stablecoin issuance since 2018 and that New York-approved issuers are subject to its stablecoin framework covering reserve requirements, redeemability, transparency, and a prohibition on rehypothecation.