General 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
