New System Provides Real-Time Tracking of Stablecoin Assets and Liabilities

The Bank for International Settlements and the Bank of England have introduced a new system called Pyxtrial, designed to provide near real-time insights into the liabilities and assets backing stablecoins.

This initiative, detailed in a report released Wednesday, aims to address significant challenges faced by financial regulators by offering direct data access from issuers’ systems to verify on-chain liabilities.

Pyxtrial comes at a time when the legitimacy of stablecoin reserves has been under scrutiny, especially following the FTX collapse in 2022. Many exchanges and issuers have attempted to improve transparency by sharing “proof of reserves,” which confirms that their digital assets are fully backed.

For instance, Tether Ltd., which issues the largest stablecoin by market cap, regularly publishes attestations about its reserves. However, the accuracy of this data may not always align perfectly with the actual circulation of Tether Tokens.

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Pyxtrial’s modular and adaptable design allows regulators to customize the system to various international contexts and potentially apply it to other digital assets. The technology’s ability to provide real-time tracking of assets and liabilities represents a significant advancement over traditional data collection methods.

While Pyxtrial has shown promising results as a proof of concept, further testing and development are needed before a full-scale rollout. The project also highlights the need for skilled personnel to manage and operate the system effectively. The timeline for a finalized version of the technology is still pending.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.