SIO-11.2.13
The recovery options referred to in Paragraph SIO-11.1.3 and SIO-11.2.12 must include the following:
(a) the recovery plan must set a maximum amount for liquidity fees to be imposed on redemptions;
(b) in setting the maximum amount of liquidity fees to be imposed on redemptions, stablecoin issuers must ensure that this recovery option is not applied as a means to increase the issuer’s liquidity resources at the expenses of clients. Stablecoin issuers must ensure that this recovery options are applied only temporarily during the distress phase with the sole purpose to reduce redemption requests while stabilising the value of the approved stablecoin;
(c) the recovery plan should set out different quantitative levels of limits on the number or amount of approved stablecoins that can be redeemed on any working day. These levels should be determined based on the severity of the breach(es) of recovery plan indicators and must be set both at aggregate level (e.g. as a percentage of the entire amount of approved stablecoin issued) and at wallet level;
(d) the recovery plan should explain what other remedial actions the stablecoin issuer will take once it has suspended redemptions. Stablecoin issuers must include in their recovery plan that they will consider that suspending redemptions could negatively impact their reputation and the confidence of clients and result in higher volumes of redemption requests once the suspension is lifted. Stablecoin issuers must include in their recovery plan that they will especially consider whether the lift of the suspension should be accompanied by other measures, including but not limited to liquidity fees or limits to the amount of approved stablecoins that can be redeemed on a daily basis;
(e) stablecoin issuers must include in the recovery plan how they plan to restore compliance with the regulatory requirements and clearly communicate to the market the next steps.
Added: July 2025