What Is the Key Audit Requirement for a Fiat-Collateralized Stablecoin?
The key requirement is a regular, independent third-party audit of the issuer's reserves. The audit must verify that the amount of fiat currency (e.g.
USD) held in reserve accounts exactly matches the total circulating supply of the stablecoin. This transparency is crucial for maintaining user trust and proving the 1:1 peg is genuinely backed.
