Lead
Acting FDIC Chair Travis Hill told attendees at the Federal Reserve Bank of Philadelphia’s fintech conference that the agency is preparing guidance for tokenized deposit insurance and plans to publish an application process for bank-issued stablecoins by year’s end. The remarks—reported by Bloomberg and Law360—signal that the U.S. banking watchdog is ready to move from rhetoric to rulemaking on blockchain-native liabilities. (Cointelegraph)
“A Deposit Is a Deposit”
Hill reiterated his long-held view that moving a bank deposit onto a blockchain “shouldn’t change its legal nature,” implying tokenized deposits deserve the same insurance and supervisory treatment as traditional liabilities. The FDIC’s upcoming guidance aims to clarify how insured banks can tokenize deposits without tripping legacy compliance wires, potentially unlocking programmable cash products that settle in real time.
Stablecoin Licensing Regime
Hill also disclosed that staff are drafting a proposal that would outline how FDIC-supervised institutions can apply to issue dollar stablecoins under the GENIUS Act, which requires banks to meet capital, reserve, and risk-management standards before offering fiat-pegged tokens. While he cautioned it’s too early to gauge industry interest, Hill said the agency expects to release details of the regime before the close of 2025.
Why It Matters
- Regulatory clarity: Banks have largely sat on the sidelines while fintechs dominate the $305 billion stablecoin market (DefiLlama). A formal application path could change that calculus.
- Tokenization boom: Real-world asset tokenization has already topped $24 billion this year, led by Treasury- and credit-backed products. FDIC guidance would give institutions confidence to launch tokenized deposit rails that interoperate with that ecosystem.
- Policy alignment: The comments align with Treasury estimates that stablecoin adoption could pull $6.6 trillion in deposits out of traditional banks over time—a shift regulators would rather supervise than fight.
A workable FDIC playbook won’t just legitimize bank stablecoins; it could also accelerate the convergence of traditional finance and on-chain infrastructure by making tokenized liabilities as safe—and boring—as their analog predecessors.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.