00:00 Speaker A

To keep the token redeemable, the issuer holds reserve assets against it.

00:04 Speaker A

Under the American framework, those reserves must be maintained at least one to one and generally consist of cash and highly liquid short-term instruments such as treasury bills and overnight repos backed by treasury securities.

00:20 Speaker A

So a person in Argentina, Turkey or Nigeria, who moves savings into a regulated dollar stable coin may indirectly create demand for US government debt.

00:30 Speaker A

The user gets digital dollars but generally no yield from the token itself.

00:35 Speaker A

The issuer and its distribution partners capture the reserve income.

00:39 …