Article 36 Obligation to have a reserve of assets, and composition and management of such reserve of assets

Issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; of asset-referenced tokensmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; shall constitute and at all times maintain a reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;.

1. the risks associated to the assets referenced by the asset-referenced tokensmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; are covered; and

2. the liquidity risks associated to the permanent rights of redemption of the holders are addressed.

The reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; shall be legally segregated from the issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets;’ estate, as well as from the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; of other asset-referenced tokensmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies;, in the interests of the holders of asset-referenced tokensmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; in accordance with applicable law, so that creditors of the issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; have no recourse to the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;, in particular in the event of insolvency.

Issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; of asset-referenced tokensmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; shall ensure that the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; is operationally segregated from their estate, as well as from the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; of other tokens.

EBA, in close cooperation with ESMA and the ECB, shall develop draft regulatory technical standards further specifying the liquidity requirements, taking into account the size, complexity and nature of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; and of the asset-referenced tokenmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; itself.

1. the relevant percentage of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; according to daily maturities, including the percentage of reverse repurchase agreements that are able to be terminated by giving prior notice of one working day, or the percentage of cash that is able to be withdrawn by giving prior notice of one working day;

2. the relevant percentage of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; according to weekly maturities, including the percentage of reverse repurchase agreements that are able to be terminated by giving prior notice of five working days, or the percentage of cash that is able to be withdrawn by giving prior notice of five working days;

3. other relevant maturities, and overall techniques for liquidity management;

4. the minimum amounts in each official currencymeans an official currency of a country that is issued by a central bank or other monetary authority; referenced to be held as depositsmeans a deposit as defined in Article 2(1), point (3), of Directive 2014/49/EU; in credit institutionsmeans a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 and authorised under Directive 2013/36/EU;, which cannot be lower than 30 % of the amount referenced in each official currencymeans an official currency of a country that is issued by a central bank or other monetary authority;.

For the purposes of points (a), (b) and (c) of the second subparagraph, EBA shall take into account, amongst others, the relevant thresholds laid down in Article 52 of Directive 2009/65/EC.

EBA shall submit the draft regulatory technical standards referred to in the first subparagraph to the Commission by 30 June 2024.

Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.

Issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; that offer two or more asset-referenced tokensmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; to the public shall operate and maintain segregated pools of reserves of assetsmeans the basket of reserve assets securing the claim against the issuer; for each asset-referenced tokenmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies;. Each of those pools of reserves of assetsmeans the basket of reserve assets securing the claim against the issuer; shall be managed separately.

Where different issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; of asset-referenced tokensmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; offer the same asset-referenced tokenmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; to the public, those issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; shall operate and maintain only one reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; for that asset-referenced tokenmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies;.

The management bodiesmeans the body or bodies of an issuer, offeror or person seeking admission to trading, or of a crypto-asset service provider, which are appointed in accordance with national law, which are empowered to set the entity’s strategy, objectives and overall direction, and which oversee and monitor management decision-making in the entity and include the persons who effectively direct the business of the entity; of issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; of asset-referenced tokensmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; shall ensure the effective and prudent management of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;. The issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; shall ensure that the issuance and redemption of asset-referenced tokensmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; is always matched by a corresponding increase or decrease in the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;.

The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; of an asset-referenced tokenmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; shall determine the aggregate value of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; by using market prices. Its aggregate value shall be at least equal to the aggregate value of the claims against the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; from the holders of the asset-referenced tokenmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; in circulation.

1. list the assets referenced by the asset-referenced tokensmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; and the composition of those assets;

2. describe the type of assets and the precise allocation of assets that are included in the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;;

3. contain a detailed assessment of the risks, including credit risk, market risk, concentration risk and liquidity risk resulting from the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;;

4. describe the procedure by which the asset-referenced tokensmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; are issued and redeemed, and the procedure by which such issuance and redemption will result in a corresponding increase and decrease in the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;;

5. mention whether a part of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; is invested as provided in Article 38;

6. where issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; of asset-referenced tokensmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; invest a part of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; as provided in Article 38, describe in detail the investment policy and contain an assessment of how that investment policy can affect the value of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;;

7. describe the procedure to purchase asset-referenced tokensmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; and to redeem such tokens against the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;, and list the persons or categories of persons who are entitled to do so.

Without prejudice to Article 34(12), issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; of asset-referenced tokensmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies; shall mandate an independent audit of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; every six months, assessing compliance with the rules of this Chapter, as of the date of their authorisation pursuant to Article 21 or as of the date of approval of the crypto-assetmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; white paper pursuant to Article 17.

1. the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; has been required to implement a recovery arrangement or measures in accordance with Article 46(3);

2. the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; has been required to implement a redemption plan in accordance with Article 47;

3. it is deemed necessary to protect the economic interests of holders of the asset-referenced tokenmeans a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies;;

4. it is deemed necessary to avoid a significant adverse effect on the financial system of the home Member Statemeans:where the offeror or person seeking admission to trading of crypto-assets other than asset-referenced tokens or e-money tokens has its registered office in the Union, the Member State where that offeror or person has its registered office;where the offeror or person seeking admission to trading of crypto-assets other than asset-referenced tokens or e-money tokens has no registered office in the Union but does have one or more branches in the Union, the Member State chosen by that offeror or person from among the Member States where it has branches;where the offeror or person seeking admission to trading of crypto-assets other than asset-referenced tokens or e-money tokens is established in a third country and has no branch in the Union, either the Member State where the crypto-assets are intended to be offered to the public for the first time or, at the choice of the offeror or person seeking admission to trading, the Member State where the first application for admission to trading of those crypto-assets is made;in the case of an issuer of asset-referenced tokens, the Member State where the issuer of asset-referenced tokens has its registered office;in the case of an issuer of e-money tokens, the Member State where the issuer of e-money tokens is authorised as a credit institution under Directive 2013/36/EU or as an electronic money institution under Directive 2009/110/EC;in the case of crypto-asset service providers, the Member State where the crypto-asset service provider has its registered office; or another Member State.

The valuation at market prices referred to in paragraph 7 of this Article shall be made by using mark-to-market, as defined in Article 2, point (8), of Regulation (EU) 2017/1131 of the European Parliament and of the Council(³⁸)Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June 2017 on money market funds (OJ L 169, 30.6.2017, p. 8). whenever possible.

1. the number and quality of the counterparties;

2. the volume and turnover in the market of the reserve asset;

3. the size of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;.

Where use of mark-to-market as referred to in paragraph 11 of this Article is not possible or the market data is not of sufficiently good quality, the reserve asset shall be valued conservatively by using mark-to-model, as defined in Article 2, point (9), of Regulation (EU) 2017/1131.

1. the volume and turnover in the market of that reserve asset;

2. the size of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;;

3. the market risk, interest rate risk and credit risk attached to the reserve asset.

When using mark-to-model, the amortised cost method, as defined in Article 2, point (10), of Regulation (EU) 2017/1131, shall not be used.