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Project Pyxtrial: monitoring the backing of stablecoins

Type
Publication
Series
Innovation Hub project report
Date Published
31 July 2024
Sources
BIS Innovation Hub

Project Pyxtrial is a joint project between the Bank for International Settlements (BIS) Innovation Hub and the Bank of England. Pyxtrial explores how technology solutions can enable the monitoring of asset-backed stablecoins’ balance sheets, providing insight into whether the backing assets exceed their liabilities at all times.

To support the supervision of issuers of asset-backed stablecoins, Project Pyxtrial has developed a prototype data analytics pipeline which includes data collection, storage and analysis. The technology is a first step towards a tool that could support supervisors and regulators1 in proactively detecting issues in stablecoin backing and aid the development of policy frameworks based on integrated data.