Circle France may temporarily delay USDC redemptions for European holders if reserves cannot be rebalanced between Circle France and Circle LLC in the United States. Authorized crypto service providers could face redemption caps based on their reported holdings, while other EEA holders may have their requests verified to establish the origin of their holdings before the stress period. The right to par-value redemption is preserved, but its execution depends on legal, regulatory and operational conditions. The reserve-rebalancing mechanism between issuing entities appears as a critical point as the European Systemic Risk Board has recommended restricting multi-issuer stablecoins. Global token backing does not guarantee immediate access to liquidity during operational stress.
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