Definition ∞ Digital asset reserve requirements mandate that issuers of certain digital assets, particularly stablecoins, hold specific amounts of underlying assets to back the value of their tokens. These reserves aim to ensure the stability and redeemability of the digital asset at its pegged value. Such requirements enhance consumer protection and market confidence.
Context ∞ The transparency and composition of digital asset reserves are central to ongoing regulatory debates, especially concerning stablecoins. Authorities are pressing for clear attestations and audits of reserve holdings to mitigate risks of insolvency and market instability. Establishing consistent reserve standards is a key regulatory objective for the broader digital asset landscape.
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