Regulations
What a regulator looks for in a reserve-backed token
By AKAVI Team1 min read
The questions supervisors ask about reserves, custody and redemption, and where to find the answers.
Rules differ by country, but the questions supervisors ask about a reserve-backed token are remarkably consistent.
The usual questions
- Where are the reserves held, and with whom?
- How often is the reserve checked, and by whom?
- Can a holder redeem at par, and how quickly?
- What happens to holders if the issuer fails?
Where we answer them
Our reserve report, custody notes and redemption terms answer each of these in plain language. If something is unclear, ask us and we will add it.
