OCC Sets 5% On-Demand Reserve Floor for Stablecoin Issuers

The Office of the Comptroller of the Currency (OCC) finalized payment stablecoin rules Wednesday, requiring issuers it oversees to fully back outstanding tokens and keep 5% of reserves available on demand. Eligible reserves must equal or exceed the value of outstanding coins at all times. Issuers must publish a monthly breakdown of those holdings, which may include cash, demand deposits and short-dated U.S. Treasurys. For qualifying requests, issuers generally must process redemptions within two business days. The rule also bars issuers from paying interest or yield solely because someone holds, uses or retains a stablecoin.