The committee is considering whether longer-term assets should be permitted as reserve assets. However, they believe that if these assets are allowed, they should overcollateralize the claims of stablecoin holders. This means that the value of the assets held as reserves should exceed the value of the stablecoins issued. By overcollateralizing, the committee aims to ensure the stability and security of stablecoin holders’ claims. This cautious approach is intended to prevent any potential risks or uncertainties that may arise from using longer-term assets as reserve assets.
HomeDIGITAL ASSETS REGULATORYworldwide-stablecoinBasel Committee suggests introducing maturity limits for stablecoin reserve assets