Project Pyxtrial is a joint project between the Bank for International Settlements (BIS) Innovation Hub and the Bank of England. Pyxtrial explores how technology solutions enable balance sheet monitoring of asset-backed stablecoins, providing insight into whether the underlying assets consistently exceed the debt.
To support the oversight of asset-backed stablecoin issuers, Project Pyxtrial has developed a prototype data analysis pipeline that includes data collection, storage, and analysis. This provides regulators with near real-time data about stablecoin debt and its underlying assets. Adopting Pyxtrial allows supervisors to receive fully automated reports more frequently. This improves the efficiency and responsiveness of the monitoring process, allowing supervisors to respond quickly to potential risks. Pyxtrial is designed so that its technical components (APIs, integration layers, data models, data storage solutions, and dashboards) are modular, reusable, and reusable.
Pyxtrial has demonstrated that it is possible to monitor the balance sheets of asset-backed stablecoins. However, for Pyxtrial to be successful, regulators will need a multidisciplinary team to implement and operate Pyxtrial.
Project Pyxtrial has the potential to monitor other tokenized products backed by real-world assets. This technology is the first step toward a tool that can support supervisors and regulators to proactively detect stablecoin backing issues and assist in developing policy frameworks based on integrated data.
