> For the complete documentation index, see [llms.txt](https://docs.stablelabs.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stablelabs.co/getting-started-with-genify/how-it-works/stablecoins/what-are-stablecoins/stablecoin-backing.md).

# STABLEcoin Backing

Stable Labs adheres to a transparent approach and a strict 1:1 fiat backing policy. This approach ensures that users can trust the stability and security of their fiat-denominated tokens, knowing that each token is fully backed and transparently managed.

#### Key Features

* **1:1 Fiat Backing:**
  * Each fiat-denominated token is fully backed by an equivalent amount of the respective fiat currency.
  * Examples include Euro backing for EURI and CNY backing for CNYI.
* **Proof of Reserve:**
  * Reserve holdings are transparently disclosed via the Chainlink Proof of Reserve Oracle.
  * A link to the Proof of Reserve will be provided at the time of mainnet deployment.
* **Treasury Management:**
  * Tokens held in the stablecoin treasury contract are unbacked and not in circulation.
  * The treasury acts as a staging ground for stablecoins, which are sent into circulation upon receiving a minting request from a client.
* **Segregated Reserves:**
  * Reserves backing the stablecoins are kept separate from Stable Labs's or Genify's operational resources.
  * This segregation follows guidelines set by the EMI license and relevant regulatory authorities.