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  • Composition of Reserve Assets

    • SIO-6.1.6

      Stablecoin issuers must ensure that the reserve assets are of high quality and high liquidity with minimal market, credit and concentration risk. In determining the composition of the reserve assets, stablecoin issuers must take into account the liquidity requirements of the approved stablecoin under consideration and how the reserve assets will be managed and invested without any risk to clients permanent right of redemption.

      Added: July 2025

    • SIO-6.1.7

      Stablecoin issuers must ensure that the composition of reserve assets only includes the following:

      (a) Cash and deposits callable at one day notice held with banks rated at a minimum AA- or equivalent. The CBB recognises Standard and Poor’s, Moody’s, Fitch as eligible credit rating agencies. With respect to the possible recognition of other rating agencies as eligible credit rating agencies, the stablecoin issuer should undertake discussion with the CBB and provide the CBB with necessary information and justification;
      (b) Debt securities with residual maturity of 90 days or less issued by the central bank of the reference currency;
      (c) Repurchase agreement with a maturity of 7 days or less which are backed by (b) above; and
      (d) Short term government money market funds.
      Added: July 2025

    • SIO-6.1.8

      In addition to the requirement of Paragraph SIO-6.1.7, stablecoin issuers issuing Bahraini Dinar (BHD) backed approved stablecoins can invest in US Dollar (USD) denominated T-bills with residual maturity of 90 days or less issued by the central bank of the reference currency.

      Added: July 2025