Stablecoin Requirements

Definition ∞ Stablecoin requirements are the specific criteria and conditions that stablecoin issuers must satisfy to maintain their asset’s peg to a reference value, typically a fiat currency. These requirements often include holding sufficient reserves, undergoing regular audits, and adhering to transparency standards. They are critical for maintaining confidence and stability.
Context ∞ Stablecoin requirements are a major focus for global financial regulators due to their growing role in the digital asset economy and potential systemic risks. Ongoing discussions center on mandating full reserve backing, robust auditing, and clear legal frameworks. This ensures stablecoins remain reliable and do not pose threats to financial stability.