The OCC proposed a stablecoin redemption framework setting an ordinary deadline of two business days, extendable to seven days when requests exceed 10% of outstanding issuance in a 24-hour period. Faster redemptions remain possible through buyers or conversion providers who fund the gap before receiving issuer dollars, though their liquidity capacity during a redemption surge remains unresolved. Circle and Coinbase offer near-instant conversion options under certain eligibility conditions, including a 100,000-dollar limit per transaction for Coinbase’s instant bank withdrawals. The Fed clarified the fundamental distinction between round-the-clock blockchain payment functionality and conversion into bank dollars, which follow different timelines. Sound reserve backing alone cannot guarantee rapid access to funds, as this depends on conversion mechanisms and secondary market liquidity.
Source: Read the original article
