The Bank of England and the BIS shared the results of a proof of concept (PoC) for a regulatory or supervisory tool, Pyxtrial, to monitor the asset backing of stablecoins. It allows a supervisor to get a single view of stablecoin liabilities across multiple coins and blockchains and the corresponding reserves. The trial covered Tether, USDC, Binance USD, True USD and the Pax Dollar.
We thought the tool would connect to the back offices of the custodians, trust companies and banks that manage the stablecoin reserves. Hence, we expected the supervisor would get a more up-to-date and reliable view than the public sees. But that’s not what Pyxtrial does.
As the paper highlights, currently supervisors have access to the same data that the public sees. So this tool helps to standardize that data and pulls it into a database to give the regulator a bird’s eye view in a single dashboard.
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