Federal banking authorities made clear Thursday that financial institutions will not be required to maintain extra capital reserves when working with digital securities built on blockchain technology, emphasizing their regulatory approach remains neutral toward different technologies.
The Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency released updated guidance stating they will treat tokenized securities the same as conventional securities regarding bank capital requirements.
The regulatory agencies explained they issued this clarification because of growing bank interest in handling ownership rights through tokenized securities.
“The technologies used to issue and transact in a security do not generally impact its capital treatment,” the agencies stated in their announcement.
Following President Donald Trump’s supportive cryptocurrency policies and his administration’s efforts toward favorable regulations, the digital currency sector experienced significant growth last year. This momentum led companies such as Robinhood, Kraken, and Gemini to introduce tokenized stock products in European markets.
Industry advocates argue that tokenized shares — digital instruments based on blockchain that mirror traditional stocks — have the potential to transform stock markets. These instruments would enable round-the-clock trading and immediate settlement, potentially increasing market liquidity while lowering transaction fees.
Several companies have created experimental stock tokens using blockchain technology — software functioning as a distributed digital record system — though most tokenized shares connect to publicly traded companies through third-party issuers. Major firms including BlackRock and Franklin Templeton have also developed tokenized treasury offerings.
