29. Issuers should include in the recovery plan at least the following categories of recovery plan …

Issuers should include in the recovery plan at least the following categories of recovery plan indicators, as further detailed in Annex I (Section A – “Minimum categories for all issuers of ARTs or EMTs”), in particular:

1) liquidity risk indicators, informing the issuer of a potential or actual deterioration of the liquidity profile of the reserve of assets;

2) operational risk indicators, describing the potential risks resulting from inadequate or failed internal processes, people and systems or from external events, including legal risk. When calibrating this type of indicators, issuers should specifically take into account the type of underlying technology (e.g. permissioned/permissionless distributed ledger) as well as its complexity (e.g. the existence of bridges, the quality of the cryptography, etc). Issuers should also consider that relying on a unique and complex infrastructure rather than on a standard one may have repercussions not only on the ability to replace it, but also on the availability of people able to maintain and fix it. In case of multi-chain issuances, issuers should include specific indicators for each distributed ledger technology used to distribute the asset-referenced token and/or the e-money token;

3) credit risk/asset-quality indicators, measuring the asset quality evolution of the reserve of assets; 4) referenced asset(s)-related indicators, measuring the risk of massive redemption requests, e.g. triggered by the loss of peg;

5) capital adequacy indicators, measuring the potential deterioration in the quantity and quality of the capital position of the issuer, including the level of compliance with the own funds requirements laid down in Article 35 of Regulation (EU) 2023/1114. The calibration of such indicators should be set above their applicable minimum regulatory requirement. Capital adequacy indicators should only be used by issuers of asset-referenced tokens and e-money tokens that are not credit institutions.

1. Overview

1.1 References

• Article 35 Own funds requirements

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/