No extra capital charges for bank tokenized securities
US regulators clarified Thursday that tokenized securities will be treated like traditional assets. This neutral approach supports bank interest in blockchain.
Federal regulators in the United States have clarified that banking institutions will not be required to hold additional capital against losses when managing blockchain-based securities. This guidance, issued jointly by the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, emphasizes a technology-neutral approach to financial regulation. The agencies noted that the underlying technology used to issue or transact a security does not fundamentally alter its capital treatment, a move prompted by growing interest among banks in using digital ledgers to represent ownership rights.
The technologies used to issue and transact in a security do not generally impact its capital treatment, the agencies said in a statement.
