Recovery Plan Indicators & Monitoring Thresholds
SIO-11.2.5
Stablecoin issuers must lay down in the recovery plan an adequate framework of recovery plan indicators, via which the stablecoin issuer can establish predetermined criteria that may signal the necessity of an increased frequency of monitoring or the activation of the recovery plan. These criteria should be set in a way to allow the stablecoin issuer to monitor, escalate and activate recovery options as appropriate.
Added: July 2025SIO-11.2.6
Recovery plan indicators must reflect both the approved stablecoin’s and the stablecoin issuer’s specific risk profile and operating environment. As such, the calibration of recovery plan indicators and thresholds must be applied at the level of the approved stablecoin, except for the capital adequacy indicators that should be calibrated at the level of the stablecoin issuer, based on its specific size, complexity, nature and business model and the operational risk indicators and the market confidence indicators that must be calibrated both at the level of the stablecoin issuer and at the level of the approved stablecoin.
Added: July 2025SIO-11.2.7
When assessing what type of indicators will be included in the recovery plans, a stablecoin issuer should carefully consider the types of events that may lead to a breach of regulatory requirements and elaborate specific indicators based on its internal risk assessment. Therefore, stablecoin issuers should not limit their set of recovery plan indicators to the list provided in Appendix D. Rather, they should consider the list of indicators provided Appendix D as illustrative, so they may choose any or all of the indicators under each category.
Added: July 2025SIO-11.2.8
Stablecoin issuers must include in the recovery plan that they will monitor the recovery plan indicators with an adequate frequency which would allow the timely submission of the indicators data records to the CBB upon request stablecoin issuers must also specify how they will monitor the said indicators.
Added: July 2025SIO-11.2.9
Stablecoin issuers must include recovery plan indicators of both quantitative and qualitative nature. When setting the quantitative recovery plan indicator thresholds, consistently with their overall risk management, stablecoin issuers must use progressive metrics (‘traffic light approach’) in order to inform the stablecoin issuer’s management that such indicators threshold could potentially be reached.
Added: July 2025SIO-11.2.10
Stablecoin issuers must ensure that any breach of recovery plan indicator threshold is reported as soon as practicable to the senior management but within a maximum of 24 hours, by activating the appropriate escalation process and, where relevant, acted upon. In addition, any breach of recovery plan indicator threshold and activation of internal escalation matrix must be notified to the CBB within 24hrs following the breach of recovery plan indicator threshold.
Added: July 2025SIO-11.2.11
Where a recovery plan indicator has been breached, the stablecoin issuer must assess the situation, decide whether to trigger the activation of the recovery plan and promptly notify the CBB.
Added: July 2025
