Episode Six Adds Ledger Checks for Bank Stablecoin Issuance

Episode Six made a new ledger feature available to customers on Oct. 15, adding checks before bank-issued stablecoins and tokenized deposits are created or redeemed through its E6 Token Control Ledger.

The feature, called Verified Backing, covers supported stablecoins and tokenized deposits issued through that ledger. Before a token is created, the system checks whether corresponding funds are recorded. At redemption, it checks the token’s certificate and whether the issuance remains outstanding before the bank releases funds.

Daryn Griggs, Episode Six’s managing director of APAC, said the redemption check looks for a token that “remains outstanding and has backing recorded for it.” The issuance and redemption checks examine records on the issuer-side ledger.

Those ledger records do not establish that an issuer holds the reserve assets represented by a token. Verified Backing does not hold or safeguard reserves, attest to them, or replace reserve, attestation, audit or regulatory obligations.

Episode Six made the feature available to customers across the markets where it operates. The company operates in more than 50 countries. The feature’s availability and capabilities depend on the market and how a customer implements it.

In the United States, the Office of the Comptroller of the Currency proposed rules under the GENIUS Act on Feb. 25. The proposal addresses reserve assets and redemption, along with risk management, audits, reporting and supervision for entities within the agency’s jurisdiction. Verified Backing adds checks within the ledger, while the proposed rules cover broader issuer requirements.