An Issuer Capital Mandate refers to a regulatory requirement stipulating the minimum amount of capital an entity must hold when issuing financial instruments. This mandate serves as a protective measure for investors and helps ensure the issuer’s solvency. It provides a financial buffer against potential losses or operational difficulties. Such requirements are fundamental to maintaining market confidence.
Context
The concept of an issuer capital mandate is highly relevant in the context of stablecoins and other asset-backed digital tokens. A key discussion centers on appropriate capital levels for various digital asset issuers to safeguard against market volatility or operational failures. Future regulatory frameworks will likely define precise capital mandates for entities involved in the issuance of digital assets.
The new framework mandates 100% high-liquidity reserves and ₩5B minimum capital, setting a high-water mark for global stablecoin legitimacy and operational rigor.
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