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Token Reserve Balances Meaning

Token reserve balances represent assets held by a protocol or issuer to support liquidity, redemptions, or price stability. Reserves may include native tokens, stablecoins, or external assets.

They are commonly used in stablecoin backing, liquidity provisioning, and emergency risk management. Transparent reserves enhance market confidence.

Insufficient or opaque reserves can increase systemic risk and undermine trust in tokenized systems.

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