SIO-10.1 General Requirements
SIO-10.1.1
This chapter applies to stablecoin issuers who also undertake safeguarding, storing, holding or maintaining custody of approved stablecoins.
Added: July 2025SIO-10.1.2
A stablecoin issuer who undertakes safeguarding, storing, holding or maintaining custody of approved stablecoins must have systems and controls in place to:
(a) Ensure the proper safeguarding of approved stablecoins;(b) Ensure that such safe custody of approved stablecoins is identifiable and secure at all times; and(c) Ensure protection against the risk of loss, theft or hacking.Added: July 2025SIO-10.1.3
A stablecoin issuer undertaking custody services must hold approved stablecoins of the same type and amount which it holds on behalf of its clients.
Added: July 2025SIO-10.1.4
Stablecoin issuers are prohibited from selling, transferring, assigning, lending, hypothecating, pledging, or otherwise using or encumbering approved stablecoins stored, held, or maintained by, or under the custody or control of, such licensee on behalf of a client except for the redemption or transfer of the approved stablecoins at the direction of the client.
Added: July 2025Multi-Signature Arrangement
SIO-10.1.5
A stablecoin issuer that maintains custody or control of approved stablecoins must not, at any time, permit arrangements whereby just a party or signatory is able to completely authorise the movement, transfer or withdrawal of approved stablecoins held under custody on behalf of clients. In particular, licensees must not have custody arrangements whereby only a sole person can fully access the private key or keys for the approved stablecoins held under custody by the licensee.
Added: July 2025SIO-10.1.6
Stablecoin issuers that maintain custody or control of approved stablecoins are required to mitigate the risk of collusion between the authorised persons or signatories who are able to authorise the movement, transfer or redemption of approved stablecoins held under custody.
Added: July 2025SIO-10.1.7
Stablecoin issuers that maintain custody or control of approved stablecoins must have policies and procedures in place that clearly describe the process that will be adopted in the event that the licensee comes to know or suspects that the approved stablecoins it is holding under custody on behalf for clients have been compromised, such as in the event of a hacking attack, theft or fraud.
Such policies and procedures must detail the specific steps the licensee will take to protect client’s approved stablecoins in the event of such incidents. Licensed stablecoin issuers must also have the ability to immediately halt all further transactions with regard to the approved stablecoin.
Added: July 2025
