Share this article
Central Banks Are Working on a Monitoring System for Stablecoin Balance Sheets
The Bank for International Settlements is spearheading a project that will look into tech tools that could help regulators form policy frameworks for stablecoins based on data.
Updated Mar 8, 2024, 4:44 p.m. Published Feb 7, 2023, 1:00 p.m.
The Bank for International Settlements (BIS), the association of the world’s central banks, is spearheading the development of a monitoring system for stablecoins to ensure issuers maintain adequate reserves.
Named Project Pyxtrial, the program will also investigate tech tools to help regulators form data-based policy frameworks, BIS said on Tuesday as it unveiled its work program for 2023. A stablecoin is a crypto token whose value is linked to the value of other assets such as sovereign currencies, and its ability to keep its peg is linked to strength of its balance sheet.
STORY CONTINUES BELOW
While central banks worldwide have been heads-down on projects that experiment with digital versions of sovereign currencies (CBDC), the stablecoin project is a first, and illustrates a growing concern among regulators. While CBDCs are viewed by some central bankers as a more secure alternative to volatile private cryptocurrencies, stablecoins promise the stability of the U.S. dollar or euro, and make up the bedrock of decentralized finance (DeFi) applications – something regulators haven’t yet figured out how to supervise.
“Most central banks lack tools to systemically monitor stablecoins and avoid asset-liability mismatches," the BIS said in the statement. "The project will investigate various technological tools that may help supervisors and regulators to build policy frameworks based on integrated data.”
The program will kick off this year at the BIS’ Innovation Hub in London, BIS said. Revelations from 2021 on the makeup of stablecoin reserves like Tether's USDT and last year's collapse of algorithmic stablecoin UST have also put regulators on high alert. The BIS, which is made up of 63 central banks, has innovation centers scattered across the globe working on 15 different experiments involving CBDCs, the program showed.
The 2023 program focuses heavily on how central bank digital currencies could improve payments systems. The BIS is also working on monitoring systems for crypto and DeFi with Project Atlas, the announcement said.
Other standard setters such as the Basel Committee on Banking Supervision and the Committee on Payments and Market Infrastructures are also looking into crypto and stablecoin supervision.
Read more: Landmark International CBDC Test Deemed Success, BIS Says
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Canadian Province Wins Forfeiture of $1M QuadrigaCX Co-Founder's Cash, Gold via Default Judgment
The ruling transfers cash, gold bars, watches, and jewelry seized from a CIBC safety deposit box and bank account into government hands after Patryn did not defend the case.
What to know:
- The Supreme Court of British Columbia has forfeited $1 million in cash and gold tied to QuadrigaCX's co-founder, Michael Patryn, to the government.
- Patryn did not contest the forfeiture, which involved 45 gold bars, luxury watches, and over $250,000 in cash seized under an Unexplained Wealth Order.
- The forfeiture may lead to a process determining if any assets can be directed to QuadrigaCX's creditors, who received 13 cents on the dollar in the bankruptcy settlement.
Top Stories
