The Office of the Comptroller of the Currency (OCC) has finalized its stablecoin redemption rule under the GENIUS Act, effective January 18, 2027. The rule removes a proposed automatic seven-day redemption extension and establishes a two-business-day standard for issuers operating within the OCC framework.
Under the final rule issued October 21, an issuer meets its redemption deadline when it initiates a payment transfer or, at the customer's request, credits the customer's account with the issuer. External bank processing falls outside this endpoint, meaning the two-business-day clock measures issuer action, not the time funds reach the customer's bank.
High-Volume Redemption Notifications
When stablecoin redemption requests exceed 10% of an issuer's outstanding issuance value in a single 24-hour period, the issuer must notify its OCC supervisory office within 24 hours. The issuer may request an extension, which the OCC can grant or deny. The OCC stated it expects extensions to be rare.
Crossing this threshold initiates a supervisory process but does not automatically extend the redemption deadline. Issuers cannot use deficient onboarding procedures to create additional redemption time and must be prepared to handle new customer onboarding during periods of stress.
Redemption Requirements and Definitions
Covered issuers must enable redemptions from retail holders subject to applicable law, screening, and onboarding procedures reasonably designed to avoid undue delay. Policies must permit redemptions of one token or more.
The rule defines timely completion as full processing and initiation of an outgoing transfer of monetary value to the customer or their financial institution. Merely queuing a payment does not satisfy this requirement. The two-business-day clock begins after required compliance checks and excludes weekends and federal holidays.
Supervisory Reporting
The OCC revised its PS-01 reporting instructions to capture three measures: tokens redeemed but not yet paid, average redemption time from request confirmation to transfer initiation, and redemptions exceeding the two-business-day standard. These daily metrics would be submitted weekly to help supervisors distinguish unpaid redemption backlogs from slow payment initiation.
The final rule retains monthly public reserve-composition reports. Quarterly financial reports would generally become public after submission and acceptance. The first weekly collection is scheduled for January 25, 2027, and the first quarterly collection for March 31, 2027, subject to Office of Management and Budget approval.
