Reserves and attestation

Reserves are the assets a stablecoin issuer holds to back the tokens in circulation. For a stablecoin meant to hold a steady value, the goal is one-to-one backing, so each token is matched by a unit of value the issuer controls. Reserves are often held in cash, bank deposits, and short-term government securities such as Treasury bills.

An attestation is a report from an independent accounting firm that examines the reserves and confirms their value at a specific point in time. It states whether the reported reserves match the tokens outstanding on the date the firm checked.

An attestation is narrower than a full financial audit. It covers a snapshot rather than a full review of the issuer's controls and finances over a period. The reserve mix, the frequency of reporting, and the depth of review vary by issuer, so the coverage of one attestation does not describe another.