Definition ∞ Non-bank stablecoin issuers are entities that create and manage stablecoins without holding a traditional banking license. These issuers typically maintain reserves of conventional assets, such as fiat currency or short-term government securities, to back their stablecoin’s value. Their operations fall outside the direct purview of banking regulations, presenting distinct supervisory considerations. They aim to provide digital currency stability for various transactions.
Context ∞ The regulation of non-bank stablecoin issuers is a prominent and pressing issue for financial authorities globally. A central discussion involves whether these entities pose systemic risks similar to traditional banks and how best to ensure the integrity and liquidity of their reserves. Future legislative and regulatory frameworks are expected to impose stricter oversight on these issuers, potentially requiring bank-like prudential standards or specific licensing regimes.
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