Liquidity Buffers
A 10% T+0 cash floor and a 90% 48-hour-deposit layer designed to absorb redemption pressure without dipping below 100% backing.
Overview
VNX maintains a two-layer liquidity buffer behind every stablecoin in circulation: at least 10% of total reserves in immediately accessible (T+0) fiat cash, plus an additional 90% in bank deposits redeemable within 48 hours. The design supports same-day redemption capability under normal market conditions and provides a contractual liquidity reserve to absorb redemption surges without forced sales of reserve assets. This page is for treasury, risk, and compliance leaders evaluating VNX's redemption-stress preparedness.
Key benefits
Same-day redemption capability — the 10% T+0 cash floor exists specifically to guarantee immediate redemption under normal conditions.
48-hour total liquid coverage — the additional 90% in deposits redeemable within 48 hours brings total committed liquid coverage to ~25% of reserves.
Use cases
Institutional treasury — sizing VNX stablecoin allocations against worst-case same-day redemption needs.
Risk committees — evidencing to auditors and the BMA that liquidity buffers are matched to redemption-pressure thresholds.
Exchanges and market makers — pricing intra-day stablecoin redemption with confidence that the T+0 layer is sized to absorb normal redemption flow.
How it works
The 10% T+0 cash floor is held continuously across the segregated banking infrastructure (BCB and other regulated institutions for fiat segregation, fiduciary bank for stablecoin reserve). The additional 15% layer sits in short-tenor bank deposits with redemption within 48 hours, in line with the maximum access/redemption period permitted by the Custody Policy. Reserves cannot be deployed beyond bank deposits with up to two-day maturity unless the BMA grants prior consent.
Buffer structure
T+0 cash
≥10% of total reserves
Same-day
Immediate redemption coverage
48-hour deposits
90% of total reserves
≤48 hours
Stress redemption coverage
Regulatory and risk context
Liquidity buffers are the operational expression of the Stablecoin Risk Management Policy's redemption-pressure controls. The 48-hour-deposit cap is explicit in both the Stablecoin Risk Management Policy and the Custody Policy. The buffer parameters interact with the investment policy (CQS rating limits and counterparty concentration caps) and with the reserve management page for the segregation and currency-matching framework.
Related
Last updated