Uzbekistan Expands Stablecoin Collateral Rules

Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan has allowed stablecoin issuers to use government securities as collateral for digital assets.

The changes to the rules governing the special legal regime for testing crypto technologies were registered by the Ministry of Justice.

Previously, participants in the experimental regulatory regime were permitted to issue stablecoins only if they were backed by collateral in domestic or foreign currency.

Under the new rules, issuers may also use government securities they own as collateral.

According to the amendments, cash collateral must be deposited into a special account at the Central Bank, while government securities must be blocked by the Central Depository in favour of the regulator in accordance with established depository procedures.

The issuer retains the right to receive income and interest generated by those securities.

The document also introduces requirements for the amount of collateral.

The combined value of funds held in the special account at the Central Bank and the nominal value of the blocked government securities must not be less than the total nominal value of all stablecoins in circulation.

The new rules also prohibit the use of borrowed funds, pledged assets or other borrowed resources as collateral.