Stablecoin Standards v1.1
Here you will find the abbreviated first draft of the stablecoin standards. These are considered by our members to be the minimum industry standards for fiat backed stablecoins, and will be used as the criteria for awarding the StableCheckmark™️. We are focussed on fiat backed stablecoin only in the first instance, although have working groups where stablecoins backed by other forms of collateral are discussed. For the avoidance of doubt, currently only fiat backed stablecoins can qualify for the StableCheckmark™️. It should also be remembered that these standards are reviewed regularly at committee meetings, and may be subject to change as the regulatory landscape changes.
1. Fully Collateralized Treasury
100% collateralised treasury reserves in perpetuity. Treasury consisting of cash or cash equivalents* only, for a minimum of 12 months of the stablecoin launching.
2. Financial Viability
Minimum USD 250k raised in funding, or 2 years trading.
3. Monthly Attestations (or real time)
Minimum monthly attestations on the treasury by an independent professional services firm regulated in the same jurisdiction, or real time equivalent.
4. Annual Audits
Minimum annual financial and treasury audit conducted by an independent professional services firm regulated in the same jurisdiction.
5. Local Jurisdiction
Regulated in local jurisdiction unless local legislation does not allow.***
* That can be liquidated within 90 days
**Proof that the issuer has sufficient backing and belief of an investor, and that they do not need to rely on generated revenues in the first 12 months to pay its operating costs.
*** The question here is why? Assumption is that most users of a particular denominated stablecoin will be in that currency’s jurisdiction.