The Bank for International Settlements (BIS) and the Bank of England jointly developed a proof-of-concept project "Project Pyxtrial" to achieve real-time monitoring of the asset reserves behind stablecoins and tokenized assets by collecting and processing data. , thereby enhancing the transparency and control of regulatory agencies and the public over the stablecoin market.
Project Pyxtrial
With the cooperation of regulatory agencies, technical experts and digital asset issuers, Pyxtrial, as a solution for real-time monitoring of stablecoin reserves, enables authorities to abandon the cumbersome and time-sensitive data collection methods of the past, thus achieving the above applications.
Customizable system components
The report pointed out that the Pyxtrial product system consists of data models, databases and application programming interfaces (APIs), and the processed data will be provided to regulatory agencies or monitors through a customizable monitoring center.
Compare publisher and custodian data in real time
As for the operating mechanism, Pyxtrial will collect data from "the platform information of the stablecoin custodian", "reserve information provided by the issuer", "information submitted by the company to law enforcement agencies" and other on-chain and off-chain information every hour. Collect data, conduct multi-party comparisons, and perform real-time error correction.
Modular design enables repeatability
It is worth mentioning that Pyxtrial’s system is modular. In short, it can be repeatedly applied to other regulatory targets including but not limited to digital assets, including tokenized securities or bonds:
Pyxtrial's technology components are modular, reusable and versatile, designed to be integrated into existing systems based on specific regulatory needs, while providing flexibility for future enhancements.
The report writes that APIs, integration layers, data models, data storage solutions and monitoring centers are all changeable.
Powered by Project Atlas
At the same time, Pyxtrial will also provide available data through Project Atlas launched in October last year:
Atlas will collect data from cryptocurrency exchanges and public blockchains and process it according to the needs of the relevant banks.
(The Bank for International Settlements launches a visual data platform to provide complete data and lay the foundation for supervision)
Strive to improve monitoring efficiency and respond to potential risks
BIS also emphasized in the statement that this project can mainly provide regulatory agencies with almost real-time data on stablecoin liabilities and reserve assets:
Regulators can receive more frequent and fully automated reports through PyxTrial, improving the efficiency and responsiveness of the monitoring process, helping them to respond to potential risks faster.
However, the report also shows that regulatory agencies still need to have a deeper understanding of blockchain technology and regulations, which is also one of the challenges.
The regulatory framework for stablecoins still needs to be clarified
Finally, BIS also admitted that Project Pyxtrial is not yet fully ready for launch, and the real world is not yet ready for it, and relevant regulations are still being drafted:
However, PyxTrial proved that the asset reserves behind stablecoins can be regulated, and the final implementation of PyxTrial still requires regulatory agencies to join teams from all parties to implement and operate.
(Other BIS reports: Variations in exchange token trends, FinTech response to monetary policy, Private retail CBDC)
This article BIS joins hands with the Bank of England to launch Project Pyxtrial to achieve real-time monitoring of tokenized assets and stable currency reserves. First appeared in Chain News ABMedia.