OCC Sets 5% On-Demand Reserve Floor for Stablecoin Issuers

The Office of the Comptroller of the Currency (OCC) finalized payment stablecoin rules Wednesday, requiring issuers it oversees to fully back outstanding tokens and keep 5% of reserves available on demand.

Eligible reserves must equal or exceed the value of outstanding coins at all times. Issuers must publish a monthly breakdown of those holdings, which may include cash, demand deposits and short-dated U.S. Treasurys.

For qualifying requests, issuers generally must process redemptions within two business days. The rule also bars issuers from paying interest or yield solely because someone holds, uses or retains a stablecoin.

The final rule drops an earlier proposal to presume that some third-party arrangements breach the yield ban. It retains the authority to act against attempts to evade the restriction.

The requirements cover issuers within the OCC’s jurisdiction, including certain foreign issuers, and some custody activities at firms it supervises. Anti-money-laundering and sanctions requirements are on a separate rulemaking track.

The GENIUS Act became law in July 2025, creating a U.S. regulatory framework for payment stablecoins. The OCC plans to announce when it will begin accepting applications from prospective issuers. The rule takes effect Jan. 18, 2027.