SIO-6.4.1
Stablecoin issuers must establish, maintain and implement custody policies, procedures and contractual arrangements that ensure at all times that:
(a) the reserve assets are neither encumbered nor pledged as a financial collateral arrangement;
(b) the reserve assets are held with a third party i.e. a bank or an investment firm or a custodian;
(c) the stablecoin issuer has prompt access to the reserve assets to meet any requests for redemption from the clients of approved stablecoins; and
(d) risk of concentration of reserve assets is avoided.
Added: July 2025