According to CoinMeta, the Federal Reserve plans to stipulate that payment-style stablecoins issued by banks must be backed by approved reserve assets of $1 and should typically be redeemable within two working days. The reserve assets include US dollars, balances at Federal Reserve banks, certain bank deposits, US Treasury bills with a remaining maturity of no more than 93 days, qualified repurchase agreements, and eligible investment funds. Issuers are required to set aside capital for operational and credit risks, with a capital charge of 2% for the first $20 billion in issuance and 1% for amounts exceeding $50 billion. Member banks in states where such deposits are held can apply to establish subsidiaries to issue stablecoins, and the Federal Reserve must make a decision within 120 days. Federal Reserve Governor Michael Barr stated that stablecoins should be redeemable in full value reliably and promptly under various market conditions, and a public comment period will last for 60 days after the release in the Federal Register.