Choose the issuer's reserve assets and the holder's claim. The map places the resulting balance sheet among the familiar forms of private money: fully reserved instruments, money market funds, bank deposits and unbacked tokens. Liquidity is measured with the parameters of the Basel Liquidity Coverage Ratio (LCR); a regulatory panel then tests the same balance sheet against one stablecoin regime at a time.
Version 1.0, 7 October 2026. Issuer data: USDT as at 30 June 2026, USDC as at 31 August 2026. Regulatory texts checked on 7 October 2026.
Horizontal axis: liquid assets after LCR haircuts and caps (plus central bank lending when the lender of last resort is on), as a share of liabilities redeemable on demand. Rows: the holder's claim. Numbered points: reference balance sheets, on their own resources. For the bank deposit, the arrow runs to its position with central bank lending at the discount set below; deposit insurance changes stress-outflow coverage only, so it does not move the point. Gold point: the balance sheet built below.
Applies to bank deposits. For tokens redeemable at par it runs as a counterfactual.
Lowers expected run-off: retail 10% to 5%, corporates 40% to 20%. Changes stress-outflow coverage, not the position on the map.
Lends against loans and debt securities at the discount below. Moves the position on the map.
"Sovereign" means the sovereign or central bank of the stablecoin's reference currency, with a 0% risk weight. The LCR puts such debt in Level 1 at any maturity; LCR30.40 lets supervisors haircut it for interest-rate risk.
No effect on the liquidity figures; changes the regulatory check.
Reserve eligibility, deposit floors, yield and redemption terms for the balance sheet above, under one regime at a time.
A simplified test of composition and terms, not a compliance assessment or legal advice. It does not check licensing, custody, segregation, disclosure, capital or concentration limits. Every regime requires reserves in the reference currency and at least equal to tokens outstanding; the simulator assumes both.
What is measured. A promise to redeem at par is credible only if the issuer can honour it without selling assets at a discount. The simulator measures this with the Basel LCR, which grades assets by their capacity to raise liquidity under stress (LCR30) and liabilities by the share expected to run off over 30 days of stress (LCR40).
Order of the presets. The two issuer presets come first. The illustrative ones run from least to most money-like as the instruments work in practice: no redemption claim, then fund shares at portfolio value, then claims at par, with insured bank deposits at the top because the safety net keeps them at par. That order is a judgement about practice, not an output of the simulator. The map shows the other side: each balance sheet's own liquidity, where a bank deposit sits far to the left.
Verdicts. The verdicts use no regime's legal labels. A par token whose liquid assets cover every claim is sovereign-backed, fully liquid when the backing is only central bank reserves, sovereign debt of one year or less and overnight sovereign repo. It is fully liquid when full coverage also relies on bank deposits, fund shares or longer sovereign debt. Fund shares redeemed at portfolio value are compared with US money market funds. The government-fund test applies the asset types in 17 CFR 270.2a-7(a)(14): 99.5% or more in cash, government securities and fully collateralised repo. The prime-fund test applies the weekly liquid assets of 2a-7(a)(28) against the 50% threshold in (d)(4)(iii). Both tests require that the fund hold nothing that (d)(1)(i) would exclude; the simulator treats sovereign debt over one year, loans, equities, commodities and crypto as such and assumes corporate debt is short-dated. The (d)(4) thresholds restrict new acquisitions rather than set a standing floor, so the simulator treats them as a reference point.
Yield. LCR40.15 names deposits placed in a search for yield as more volatile, for foreign-currency retail deposits, and leaves the rate to supervisors. The toggle therefore changes only the regulatory check.
| Asset | Class | Basis |
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Known limitations. Three regime checks rest on texts this version could not pin down. For MiCA, the instruments eligible under art 54(b) are specified by technical standards under art 38(5); the check uses the Basel Level 1 sovereign list as a stand-in. For Singapore, "cash equivalents" is not defined in the 2023 Response, so repo and fund shares are shown as conditional; the reserve rules are also due to be set by regulations under the proposed amendments. For the United States, the Act takes effect on a date that depends on implementing regulations. Issuer figures are point-in-time reports and change monthly.
Version history. 1.0 (7 October 2026): first public version.
Sources
This simulator is the personal work of Jeff Alvares. The views it expresses are his own and do not represent those of the Banco Central do Brasil. It uses public information only, and nothing in it is legal advice or an assessment of any issuer's compliance with any regime.