HQLA (High-Quality Liquid Assets)

The GENIUS Act §104 requires PPSIs to maintain 1:1 reserve backing in high-quality liquid assets: US Treasury securities, Treasury repo agreements, insured deposits, and central bank reserves. HQLA composition tiers vary by charter size and type. The term originates from Basel III’s Liquidity Coverage Ratio, where HQLA defines assets that can be quickly converted to cash during stress periods — the same standard now applied to stablecoin reserves.

Canonical site: StableHQLA.com Cross-references: StablePPSI.com, StableRepo.com, StableGSIB.com