Regulated liability refers to financial obligations that are subject to specific governmental or institutional oversight and rules. In the context of digital assets, this typically applies to stablecoins or other tokenized assets that represent claims on traditional currencies or commodities. Issuers of such assets must comply with regulations concerning reserve backing, auditing, and capital requirements to ensure stability and consumer protection. This framework aims to mitigate risks associated with digital representations of value. It ensures that digital obligations meet established financial standards.
Context
News often reports on regulated liability concerning stablecoin stability and their potential role in the broader financial system. Key discussions center on the appropriate level of regulatory oversight needed to prevent systemic risk without stifling innovation. A critical future development is the implementation of clear, harmonized global standards for stablecoin issuance and reserve management. This provides essential context for understanding the safety and reliability of certain digital assets.
The two-year tokenized sterling pilot integrates commercial bank money onto DLT, accelerating T+0 settlement and mitigating systemic counterparty risk across three key financial verticals.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
