Assessing Stablecoin Exposure: Reserves, Custody and Financial Crime Training Course

Programme Summary

Assessing stablecoin exposure, including reserves, custody and financial crime, is the subject of this five-day training course for risk, compliance, treasury and finance leaders at managerial level, ending in a stablecoin exposure assessment pack for one use case. Organisations meet stablecoins through payments, treasury holdings and counterparties before exposure is defined. The programme moves from principles, through diagnosis of reserve, custody and crime risk, to design of limits and controls, then to application on one case. Mars Training Centre UK delivers this stablecoin exposure assessment programme for organisations deciding what to hold or accept.

The Business Case

A stablecoin can look like cash while carrying reserve, redemption, custody and financial crime risks that cash does not. Organisations that assess these risks before use can set limits, choose counterparties on evidence and explain their position to committees and supervisors, instead of reacting after a loss of value or a failed redemption.

• Loss Exposure: Falls as holdings and counterparties are limited by assessed reserve and redemption quality.
• Control Coverage: Improves as financial crime and cyber checks are applied before onboarding.
• Decision Time: Shortens as committees receive a standard assessment pack.

Principles and Evidence Base

• FSB high-level recommendations for global stablecoin arrangements: They frame the governance, reserve and redemption questions assessed in Sessions 1 and 2.
• BIS financial stability institute analysis of global stablecoins: It supports the run, operational and illicit finance risk review in Sessions 2 and 3.
• Risk appetite and limit-setting principles: They shape the exposure limits and escalation rules in Session 4.

Intended Participants

• Risk managers who assess new products and counterparties for digital assets.
• Compliance and financial crime leads who review onboarding and transaction monitoring.
• Treasury and finance managers who consider holding or accepting stablecoins.
• Committee members and internal auditors who challenge digital asset proposals.

The programme serves banking, payments, treasury, asset management and public sector organisations, and suits mixed groups.

Learning Outcomes

1. Participants will be able to evaluate the design, reserves and redemption terms of a stablecoin arrangement.
2. Participants will be able to diagnose reserve, custody and run risk using documents and stress scenarios.
3. Participants will be able to construct due diligence and monitoring checks for financial crime and cyber risk.
4. Participants will be able to prioritise stablecoin exposures against a stated risk appetite.
5. Participants will be able to justify limits and controls for one stablecoin use case.
6. Participants will be able to design an exposure assessment pack suitable for committee approval.

Programme Structure

Day 1: Assessing Stablecoin Exposure Principles

What is a stablecoin, how does it hold value, and where does exposure arise?

• Stablecoin Design Types Taxonomy
• FSB Global Stablecoin Recommendations Map
• Reserve Asset and Redemption Mechanism Diagram
• Issuer and Intermediary Role Chart
• Stablecoin Exposure Inventory Template

Day 2: Diagnosing Reserve, Custody and Run Risk

How sound are the reserves, custody arrangements and redemption terms behind a stablecoin?

• Reserve Composition Review Checklist
• Redemption Terms Reading Guide
• Custody and Wallet Control Assessment
• Depeg Event Case Timeline
• Run Dynamics Stress Scenario Sheet

Day 3: Financial Crime, Operational and Cyber Risk Review

Where do financial crime and operational weaknesses arise in stablecoin use?

• Counterparty Due Diligence Questionnaire
• Transaction Monitoring Scenario Library
• Wallet Screening and Transfer Information Process Map
• Smart Contract and Cyber Risk Checklist
• Third Party Dependency Register

Day 4: Designing Limits, Controls and Oversight

Which limits and controls keep stablecoin exposure within appetite?

• Exposure Limit Setting Method
• Issuer Approval and Monitoring Criteria
• Control Matrix for Stablecoin Activity
• Early Warning Indicator Dashboard
• Board Reporting Pack Outline

Day 5: Applying the Exposure Assessment to One Use Case

Is the exposure assessment ready for approval for one stablecoin use case?

• Applying the Session 1 Inventory to the Chosen Use Case
• Testing the Session 2 Checklist on a Sample Issuer
• Running the Session 3 Questionnaire on a Sample Counterparty
• Checking the Session 4 Limits Against Stress Results
• Completing the Stablecoin Exposure Assessment Pack

Methodology

The programme uses a structured exercise method built on anonymised issuer disclosures, reserve reports and depeg case summaries. Participants review documents in small groups, score reserve and custody quality, run stress scenarios and test due diligence questions on sample counterparties, with feedback from peers.

• Suggested activity: Reading a sample reserve report and listing questions for the issuer.
• Suggested activity: Stress testing a holding against a redemption run scenario.
• Suggested activity: Drafting limits for a payment use case and defending them to a panel.

Capstone Output

Each participant completes a stablecoin exposure assessment pack for one use case. It holds an exposure inventory, a reserve and redemption review, a custody and financial crime assessment, a stress scenario summary, proposed limits and controls, and a committee paper outline. The pack is used to brief approvers, set conditions for use and plan monitoring.

Frequently Asked Questions

Is assessing stablecoin exposure suitable for managers without a digital asset background?

Yes. Assessing stablecoin exposure starts from risk and control principles and assumes responsibility for risk, compliance or treasury decisions, not technical blockchain knowledge.

Which references does assessing stablecoin exposure rest on?

Assessing stablecoin exposure rests on the FSB high-level recommendations for global stablecoin arrangements, BIS financial stability institute analysis and risk appetite and limit-setting principles.

How is the pack from assessing stablecoin exposure used at work?

You use the stablecoin exposure assessment pack to brief approvers, set conditions and limits for a use case and plan ongoing monitoring of the issuer and counterparties.

How does assessing stablecoin exposure differ from a programme on cryptocurrency trading?

Assessing stablecoin exposure centres on risk, reserves and controls for organisations that hold or accept stablecoins, while a cryptocurrency trading programme centres on market strategy and execution.