What it is
A reserve attestation is a snapshot report provided by an accounting firm or auditor, typically on a monthly or quarterly basis, detailing the assets a stablecoin issuer holds in its reserves. Unlike a full audit, an attestation provides a limited assurance review, confirming that the stated assets exist and match the stablecoin's outstanding supply at a specific point in time. It aims to provide transparency and build trust that the stablecoin is adequately backed.
These attestations are crucial for market participants to assess the backing and solvency of fiat-backed stablecoins. When an attestation is released, investors examine the types of assets held (e.g., cash, Treasury bills, commercial paper) and compare them against the stablecoin's circulating supply. Concerns about the quality or transparency of reserve assets, or infrequent attestations, can lead to market skepticism and potentially impact the stablecoin's peg and investor confidence.
Why it matters
Reserve attestations help you gauge the trustworthiness and backing of a stablecoin, which is vital for understanding its stability and risk profile.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice