Uzbekistan Expands Crypto Collateral Options with Government Securities

Uzbekistan has expanded its rules for stablecoin issuers to allow them to use government securities as collateral. The change was made by amending the special legal regime for testing crypto technologies, which was registered by the Ministry of Justice.

The previous rule allowed stablecoin issuers to back their digital assets with domestic or foreign currency only. Now, they can also use government securities they own as collateral.

Under the new rules, cash collateral must be deposited into a special account at the Central Bank, while government securities must be blocked by the Central Depository in favor of the regulator. The issuer retains the right to receive income and interest generated by those securities.

The combined value of funds held in the special account and the nominal value of the blocked government securities must not be less than the total nominal value of all stablecoins in circulation, according to the new rules.