Reserve Management
100% backing, currency-matched, daily-valued — VNX stablecoin reserves held at the fiduciary bank and Bermuda Commercial Bank (segregated).
Overview
VNX Global Ltd backs every stablecoin in circulation with reserve assets equal to or greater than the face value of tokens outstanding. Reserves are held in segregated, ring-fenced bank accounts at Bermuda Commercial Bank (BCB) or other regulated institutions, with stablecoin reserves held at a dedicated fiduciary bank. Daily valuation ensures the reserve pool remains at or above 100% of liabilities; an independent fiduciary structure makes the reserves bankruptcy-remote and unavailable to VNX affiliates or creditors. This page is written for CFOs, treasury teams, and compliance leaders evaluating VNX's reserve mechanics.
Key benefits
Continuous full backing — reserves are valued daily and must remain 100% backed by fiat or other acceptable liquid assets across both VCHF and VGBP.
Bankruptcy-remote structure — assets are legally ring-fenced and structured so that neither the Company including its affiliates, nor creditors can claim the assets.
Currency-matched reserves — every stablecoin's reserves are held in the same currency as outstanding liabilities (CHF for VCHF, GBP for VGBP), unless BMA approves otherwise.
How it works
Customer fiat is wired into a dedicated, ring-fenced fiduciary account when a customer mints stablecoins. The funds are then placed into the relevant currency reserve pool, and stablecoins are minted and delivered to the customer's platform wallet or whitelisted external wallet. Reserves are held in segregated bank accounts at BCB or other regulated financial institutions.
At least 10% of total reserves is maintained in immediately available (T+0) cash to guarantee redemption under normal conditions, with other held in deposits redeemable within 48 hours. Reserves cannot be invested in instruments other than bank deposits with maturities of up to two days unless prior BMA consent is obtained. Investment limits and concentration caps are documented in the investment policy.
Daily valuation of backing assets is performed; the value of the reserve pool must equal or exceed the face value of the stablecoins in circulation. On the redemption side, reserves at the fiduciary bank are reduced and fiat is released to the customer per their instructions, with average processing time of one business day for direct redemption. A liquidity-pool buyback path is also available to absorb redemption pressure without immediate reserve drawdown.
Reserve structure at a glance
Backing ratio
≥100% of stablecoins outstanding (continuous)
Reserve currency
Matched to liability currency (CHF, GBP)
Custodian — fiduciary
Fiduciary bank (stablecoin reserves)
Custodian — segregated
Bermuda Commercial Bank or other regulated institution
T+0 cash buffer
≥10% of total reserves
48-hour buffer
≥90% in deposits redeemable within 48 hours
Investment limits
Bank deposits ≤2-day maturity; CQS rating limits per investment policy
Valuation cadence
Daily
Co-mingling
Prohibited; segregation enforced by VNX and BCB
Audit log retention
≥5 years
Regulatory and risk context
Reserve management is a primary control for the stablecoin-specific risk family — reserve adequacy, redemption pressure, and depegging — addressed in stablecoin-specific risks. Liquidity buffer parameters are aligned with the conservative posture in the enterprise risk framework. Investment of reserves is governed by the investment policy, which codifies BMA prior-consent requirements and concentration limits.
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