SIO-11.3 Redemption Plan
SIO-11.3.1
A stablecoin issuer must draw up and maintain an operational plan to support the orderly redemption of each approved stablecoin, which is to be implemented upon a decision by the CBB that the stablecoin issuer is unable or likely to be unable to fulfil its obligations, including in the case of insolvency or in the case of withdrawal of license of the stablecoin issuer.
Added: July 2025SIO-11.3.2
The redemption plan must demonstrate the ability of the stablecoin issuer to carry out the redemption of the outstanding approved stablecoins issued without causing undue economic harm to its clients or to the stability of the markets of the reserve assets. The redemption plan must ensure equitable treatment to all the clients and that the clients are paid in a timely manner with the proceeds from the sale of the reserve assets. In addition, the redemption plan must also ensure the continuity of any critical activities that are necessary for the orderly redemption, whether performed by the stablecoin issuer or by any third-party entity.
Added: July 2025SIO-11.3.3
A stablecoin issuer must submit the draft redemption 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 redemption plan where necessary to ensure its proper implementation. The CBB shall inform the stablecoin issuer about its decision, i.e. either approving the draft redemption plan or recommending amendments to the draft redemption plan, within 30 days from the date of submission of the draft redemption plan. The stablecoin issuer must implemented the redemption plan as approved by the CBB within 15 days from the date of approval of the redemption plan. The stablecoin issuer must regularly review and update the redemption plan.
Added: July 2025General Principles and Objectives of the Redemption Plan
SIO-11.3.4
Where a stablecoin issuer has more than one outstanding issuance of approved stablecoins, the redemption plan of each approved stablecoin must appropriately address the interconnectedness between outstanding approved stablecoins.
Added: July 2025SIO-11.3.5
The redemption plan must ensure equitable treatment of all clients holding the approved stablecoin, and the protection of the right of redemption attached to the approved stablecoin as described in the stablecoin whitepaper.
Added: July 2025SIO-11.3.6
In order to ensure equitable treatment to all clients holding the approved stablecoin, the stablecoin issuer should include in the redemption plan how the individual redemption of claims will be suspended upon the adoption of the CBB’s decision triggering the implementation of the redemption plan for the orderly and collective redemption of the approved stablecoin.
Added: July 2025SIO-11.3.7
Stablecoin issuers must frame the redemption plan on the assumption that the remaining reserve assets underpinning the relevant approved stablecoin will be used for the benefit of all clients’ redemption claims when the CBB determines that the stablecoin issuer will not be able to or likely to be unable to fulfil its obligations towards the clients. This must be without prejudice to the right of the clients that the portion of their claim (if any) left unsatisfied by the liquidation of the remaining reserve assets must be met by the licensed stablecoin issuer in accordance with the applicable law including the applicable insolvency law.
Added: July 2025SIO-11.3.8
The redemption plan must ensure that the redemption process does not impose undue economic cost on the clients. Further, the redemption plan must indicate how the costs for the implementation of the redemption plan, such as for the appointment of consultants or intermediaries, or in connection with the liquidation of the reserve of assets will be covered.
Added: July 2025SIO-11.3.9
In order to ensure the effectiveness of the right of redemption and that undue economic cost does not affect the clients, the stablecoin issuer must ensure in the redemption plan that the costs for the liquidation of the reserve assets or otherwise linked to the implementation of the redemption plan must only be allocated to the proceeds of the liquidation of the reserve assets after the amount for meeting the relevant clients redemption claims is set aside.
Added: July 2025SIO-11.3.10
Costs indicated in the redemption plan should be identified via transparent processes, be reasonable and duly justified.
Added: July 2025SIO-11.3.11
The redemption plan must aim to ensure the maximization of the proceeds from the liquidation of the remaining reserve assets within a reasonable timeframe. For this purpose, the stablecoin issuer must develop redemption scenarios under ordinary and stressed market conditions and lay down liquidation strategies considering the composition of the reserve assets.
Added: July 2025SIO-11.3.12
The redemption plan must include the activation and operationalization timeline. Upon the CBB’s decision to activate the redemption plan, the stablecoin issuer must operationalize the redemption plan without undue delay.
Added: July 2025
