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RE: LeoThread 2025-05-20 13:09

in LeoFinance5 months ago

Reserve and Transparency Requirements:
1:1 Reserve Backing: Stablecoin issuers must maintain a 1:1 reserve of high-quality, liquid assets (e.g., cash, U.S. Treasury bills) to ensure redemption at face value and prevent de-pegging incidents.

Transparency and Audits: Issuers are required to submit monthly liquidity reports certified by CEOs and CFOs, detailing reserve composition and the number of stablecoins in circulation. Annual audits by registered public accounting firms are mandatory to ensure solvency and maintain market trust.

Reserve Restrictions: Reserves must be held in safe, liquid assets and cannot be lent out, though concerns remain about whether tokenized assets or offshore accounts could introduce risks.