5 Del. C. § 3521: Reserve requirements [For application of this section, see 85 Del. Laws, c. 339, § 2].

(a) A permitted payment stablecoin issuer shall at all times maintain identifiable reserve assets backing the issuer’s outstanding payment stablecoins on at least a 1-to-1 basis by fair value. Reserve assets must consist only of the following:

(1) United States coins and currency, including Federal Reserve notes, or money standing to the credit of an account with a Federal Reserve Bank.

(2) Funds held as demand deposits or other deposits that may be withdrawn upon request at any time, or insured shares, at an insured depository institution, subject to any limitations imposed by the Commissioner by regulation to address safety and soundness risks.

(3) United States Treasury bills, notes, or bonds that are any of the following:

a. Have a remaining maturity of 93 days or less.

b. Were issued with a maturity of 93 days or less.

(4) Money received under repurchase agreements with the permitted payment stablecoin issuer acting as a seller of securities and with an overnight maturity, that are backed by United States Treasury bills with a maturity of 93 days or less.

(5) Reverse repurchase agreements with the permitted payment stablecoin issuer acting as a purchaser of securities and with an overnight maturity, collateralized by United States Treasury notes, bills, or bonds on an overnight basis, subject to overcollateralization in line with standard market terms, that are any of the following:

a. Tri-party.

b. Centrally cleared through a clearing agency registered with the Securities and Exchange Commission.

c. Bilateral with a counterparty that the issuer has determined to be adequately creditworthy.

(6) Securities issued by an investment company registered under the Investment Company Act of 1940 [15 U.S.C. § 80a-1 et seq.], or other registered government money market funds, that are invested solely in underlying assets described in paragraphs (a)(1) through (a)(5) of this section.

(7) Any other similarly liquid assets approved in writing by the Commissioner, including any reserve described in paragraphs (a)(1) through (a)(6) of this section in tokenized form, if the tokenized reserves comply with all applicable laws and regulations.

(b) Reserve assets required under subsection (a) of this section may not be pledged, rehypothecated, or reused by the permitted payment stablecoin issuer, either directly or indirectly, except under the following circumstances:

(1) To satisfy margin obligations in connection with permitted investments under paragraphs (a)(4) and (a)(5) of this section.

(2) To satisfy obligations associated with the use, receipt, or provision of standard custodial services.

(3) To create liquidity to meet reasonable expectations of requests to redeem payment stablecoins, such that reserve assets in the form of United States Treasury bills may be sold as purchased securities for repurchase agreements with a maturity of 93 days or less, provided that the Commissioner has approved such activity or the repurchase agreements are cleared by a clearing agency registered with the Securities and Exchange Commission.

(c) Reserve assets must be held with eligible financial institutions. A permitted payment stablecoin issuer shall enter into a written custody agreement with each eligible financial institution holding its reserve assets, documenting that institution’s compliance with the requirements of § 3527 of this title.

(d) The Commissioner shall promulgate regulations establishing the following:

(1) Concentration limits on the percentage of reserve assets that may be held at any single eligible financial institution, to reduce systemic risk; provided that such regulations must include a safe harbor under which an issuer is deemed to satisfy the concentration requirement if it maintains no more than 40% of its reserve assets at any 1 eligible financial institution.

(2) Liquidity standards requiring that a permitted payment stablecoin issuer maintain minimum percentages of its required reserve assets in immediately available form, which standards shall be principles-based and tailored to the business model and risk profile of the issuer, and which may include a safe harbor substantially similar to those set forth in Office of the Comptroller of the Currency final regulations, as amended from time to time.

(e) If at any time a permitted payment stablecoin issuer’s reserve assets fall below the minimum required by subsection (a) of this section, the issuer is subject to all of the following:

(1) The issuer must notify the Commissioner through the Commissioner’s designated supervisory office on the same business day on which the issuer becomes aware, or reasonably should have become aware, that its reserve assets have fallen below the required minimum.

(2) The issuer is prohibited from issuing new payment stablecoins until its reserve assets are restored to the required minimum under subsection (a), except that the issuer may issue payment stablecoins solely as necessary to facilitate the transfer of existing payment stablecoins from 1 distributed ledger to another, provided that such transactions do not increase the net outstanding issuance value.

(f) If the issuer fails to restore its reserve assets to the required minimum within 15 consecutive business days after the deficiency first arose, the issuer must do all of the following:

(1) Immediately commence an orderly liquidation of reserve assets and redemption of all outstanding payment stablecoins in a manner consistent with § 3523 of this title and with regulations promulgated by the Commissioner.

(2) Discontinue any fee to a holder for the redemption of payment stablecoins at any time during the liquidation period.

(g) The Commissioner may extend the 15-consecutive-business-day period under subsection (f) of this section by written order for good cause shown, including where the Commissioner determines that the issuer has submitted a credible remediation plan with a reasonable timeline for attaining compliance. Notwithstanding the foregoing, if the Commissioner determines at any time that a permitted payment stablecoin issuer faces a significant risk of being unable to attain compliance with subsection (a) of this section within a reasonable period, the Commissioner may order the issuer to initiate orderly redemption of all outstanding payment stablecoins. The Commissioner’s authority under this subsection does not limit the Commissioner’s authority to pursue other enforcement measures under subchapter IX of this chapter.