What Are the Legal and Operational Requirements for Auditing the Reserves of an Asset-Backed Stablecoin?

For an asset-backed stablecoin, audits must be conducted by reputable, independent accounting firms. The legal requirement is to provide transparency and assurance to holders that the stablecoin is fully backed by the claimed reserves.

Operationally, the audit involves verifying the existence and value of the assets, which are typically held in segregated accounts at regulated financial institutions. The auditor examines bank statements, custody reports, and other financial records.

The results are published in regular "attestation reports" for the public to review.