SIO-11.1 Recovery Plan
SIO-11.1.1
A stablecoin issuer must draw up and maintain a recovery plan providing for measures to be taken by the stablecoin issuer to restore compliance with the requirements applicable to the reserve assets in cases where the stablecoin issuer fails to comply with those requirements.
Added: July 2025SIO-11.1.2
The recovery plan referred to in Paragraph SIO-11.1.1 must also include the preservation of the stablecoin issuer’s services related to the approved stablecoin, the timely recovery of operations and the fulfilment of the stablecoin issuer’s obligations in case of occurrence of events that pose a significant risk leading to disruption of operations.
Added: July 2025SIO-11.1.3
The recovery plan must include appropriate conditions and procedures to ensure the timely implementation of recovery actions as well as a wide range of recovery options, including:
(a) liquidity fees on redemptions;(b) limits on the amount of the approved stablecoin that can be redeemed on any working day;(c) suspension of redemptions.Added: July 2025SIO-11.1.4
A stablecoin issuer must submit the draft recovery plan to the CBB for approval, within six months of the date of approval of the stablecoin whitepaper. The CBB may, at its sole discretion, recommend amendments to the draft recovery plan where necessary to ensure its proper implementation. The CBB shall inform the stablecoin issuer about its decision i.e. either approving the draft recovery plan or recommending amendments to the draft recovery plan, within 30 days from the date of submission of the draft recovery plan. The stablecoin issuer must implement the recovery plan as approved by the CBB within 15 days from the date of approval of the recovery plan. The stablecoin issuer must regularly review and update the recovery plan.
Added: July 2025SIO-11.1.5
Where a stablecoin issuer fails to comply with the requirements applicable to the reserve assets and redemption requirements as referred to in Chapter 6 of this Module or, due to a rapidly deteriorating financial condition, is likely in the near future to not comply with those requirements, the CBB, in order to ensure compliance with the applicable requirements, may, at its sole discretion, require the stablecoin issuer to implement one or more of the arrangements or measures set out in the recovery plan or to update such a recovery plan when the circumstances are different from the assumptions set out in the initial recovery plan and implement one or more of the arrangements or measures set out in the updated plan within a specific timeframe.
Added: July 2025SIO-11.1.6
In the circumstances referred to in Paragraph SIO-11.1.5, the CBB may temporarily suspend the redemption of approved stablecoins, provided that the suspension is justified having regard to the interests of the clients and financial stability.
Added: July 2025
