Definition ∞ Reserve attestation is the process of independently verifying that an issuer of a digital asset, typically a stablecoin, holds the stated amount of underlying reserves. This involves regular audits or proofs to confirm the one-to-one backing of the digital asset. It aims to provide transparency and build trust in the stability of the issued currency.
Context ∞ The integrity of reserve attestation is a critical concern for the stability and credibility of stablecoins, a frequent topic in financial news. Regulators are increasingly calling for more frequent and comprehensive attestations from stablecoin issuers. Debates often focus on the quality of the reserve assets and the independence of the auditing firms conducting these verifications.
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