How it works
Reserve quality depends on what assets are held, where they are held, liquidity, issuer liabilities and the legal redemption structure.
What to check
Use issuer disclosures, independent attestations where available and regulatory filings. Check whether holders have direct redemption rights and any minimums or fees.
- Inspect reserve composition
- Check redemption rights
- Distinguish attestation from full audit
Limits and risks
A stable price target does not eliminate issuer or banking risk. Reserves can also be high quality while access is interrupted by operational or legal problems.
Primary sources
Circle USDC↗Tether Transparency↗FATF: Virtual Assets↗General information only. Investment products can lose value, and terms, fees and regulation can change.