Key takeaways
- New York's Department of Financial Services (NYDFS) issued guidance in June 2022 for US dollar-backed stablecoins issued by entities it supervises.
- Reserves must at least equal the tokens outstanding, be held in specified safe assets and be segregated from the issuer's own assets.
- Holders must be able to redeem at par in a timely way, which the guidance defines as no more than two full business days after a compliant redemption order.
- Reserves must be examined at least monthly by an independent certified public accountant.
Background
New York was one of the first US states to set specific rules for stablecoins. NYDFS supervises virtual currency businesses under its BitLicense and limited purpose trust charters, and several major dollar stablecoins have been issued by New York-regulated entities. In June 2022 it published guidance setting out the conditions for issuing a US dollar-backed stablecoin under its oversight. The guidance remains an important reference alongside the federal GENIUS Act, which creates a national framework with a role for qualifying state regimes.
The guidance applies to stablecoins issued under NYDFS supervision. It does not apply to stablecoins that a New York-regulated platform merely lists, although NYDFS expects regulated entities to consider it when seeking approval to list or issue coins. Issuers already supervised when the guidance was published were given three months to comply.
The requirements
The guidance covers three areas: backing and redeemability, reserve assets, and attestation.
| Area | Requirement |
|---|---|
| Backing | Reserve market value at least equal to nominal value of all outstanding tokens at the end of each business day |
| Segregation | Reserves held separately from the issuer's own assets, with a custodian approved by NYDFS |
| Eligible assets | Short-term US Treasury bills, reverse repos backed by Treasuries, government money market funds within limits, and deposits at insured institutions |
| Redemption | At par, no later than two full business days after a compliant redemption order, under clear published policies |
| Attestation | Independent CPA examination of reserves at least monthly, published |
What it means operationally
The end-of-business-day backing test means issuers must know their position daily, not only at month end. The redemption standard means treasury must keep enough liquid reserves to meet redemptions within two business days even in a stress, which shapes how much is held in deposits rather than Treasury bills. The monthly attestation means every month's figures must be traceable to reconciled records the accountant can test.
The monthly attestation covers the reserve position as of the last business day of the month and as of at least one randomly selected business day in the month. Because the issuer does not know in advance which day will be chosen, every day must be right. NYDFS also expects an annual attestation on the issuer's internal controls over the reserve, delivered within 120 days of the period end.
Issuers that also custody customers' virtual currency should note NYDFS's separate guidance on custodial structures, updated in September 2025, which expects customer assets to be segregated and separately accounted for both on-chain and in internal ledgers.
How it relates to the GENIUS Act
The GENIUS Act and the NYDFS guidance share the same core principles: full backing in safe, liquid assets, segregation, redemption at par and regular independent examination. The federal law adds monthly CEO and CFO certification and a national licensing structure. Issuers operating under both should build one daily reconciliation that produces the figures each requires, rather than separate processes. Our guide to stablecoin reserve reconciliation sets out that process.
In practice, an issuer that already meets the New York standard, with daily backing, segregated reserves, two-day redemption and monthly independent attestation, is well placed for the federal monthly report and certification, because most of the evidence already exists.
Safeheld reconciles token supply, reserves and custody accounts daily and supports reporting under New York, federal and EU requirements. See the GENIUS Act monthly reserve report.
Frequently asked questions
What does NYDFS require for stablecoin reserves?
Reserves at least equal to outstanding tokens at the end of each business day, held in specified safe assets and segregated from the issuer's assets.
How quickly must NYDFS-supervised stablecoins be redeemed?
No later than two full business days after a compliant redemption order, at par.
How often must reserves be attested under NYDFS guidance?
At least monthly, by an independent certified public accountant.
Does the GENIUS Act replace NYDFS guidance?
The GENIUS Act creates a federal framework with a role for qualifying state regimes; issuers should check how both apply to them.
References
- NYDFS, Guidance on the issuance of US dollar-backed stablecoins (June 2022)
- NYDFS, Updated guidance on custodial structures for customer protection in the event of insolvency (September 2025)
- GENIUS Act, S.1582, 119th Congress (Public Law 119-27)
About Safeheld
Safeheld reconciles client money every day, resolves every difference and prepares every regulatory return for sign-off, for regulated firms in the United States, the United Kingdom, the European Union, Canada, Australia, Singapore and Hong Kong. To discuss your operations, contact us at safeheld.com/contact.
This article is for general information and does not constitute legal or regulatory advice.