Stored Value Facility

Definition ∞ A Stored Value Facility (SVF) is a device or instrument that stores monetary value, allowing users to make payments up to the value stored. Examples include prepaid cards, mobile wallets, or certain digital currency platforms. The value is typically held in fiat currency, and the facility enables transactions without direct access to a bank account for each payment. SVFs are regulated to ensure consumer protection and prevent illicit financial activity.
Context ∞ The concept of a Stored Value Facility is increasingly relevant in the digital asset space, particularly concerning platforms that hold user funds in fiat or stablecoins. Regulators are examining whether certain cryptocurrency exchanges or digital wallet providers should be classified as SVFs, subjecting them to specific licensing and operational requirements. The ongoing discussions aim to clarify the regulatory perimeter for digital asset services that manage customer funds.