The Bank of International Settlements (BIS) in collaboration with the Bank of England announced the release of Project Pyxtrial which monitors the stablecoin balance sheet.
The joint experiment program is a proof-of-concept project that comprises an Application programming interface (API), a database, and a data model which will be made available to regulators via a customizable interface. According to the developer:
Pyxtrial does not assess asset quality, the rigour of asset valuations or the quality of the data sources used. Hence supervisors may need to play a role in setting out rules or guidance on data quality.
According to BIS’s report, Pyxtrial is made to collect data from stablecoin hosting sites and blockchains on a per-hour schedule. The information is then cross-referenced with source data regarding the assets that support the stablecoins. This will allow regulators to be aware of data sent by the issuer and assets received to help flag any inconsistency.
While the project promises an easily reusable and repurposed model that can easily adapt to specific regulatory needs, the project developers highlighted that the program is yet to be fully ready for launch.
They further noted that the world is not ready for the full capacity of the project; adding that the regulations modalities are still being developed.
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