Bank / Credit Union
US federally chartered banks can now hold stablecoins in reserve
September 22, 2020
The U.S. Office of the Comptroller of the Currency has published a letter of guidance to national banks and federal savings associations that they can now hold reserve funds for stablecoin issuers.
The letter responds to questions from the banks regarding the application of stablecoin-related bank activities. Stablecoins refer to cryptocurrency backed by an asset such as a fiat currency, including U.S. dollars or other foreign currency, according to a press release.
The letter concludes national banks and federal savings associations may hold reserves in situations on behalf of customers who issue stablecoins, and when the coins are held in hosted wallets. It also addresses the use of stablecoins when backed by a one-to-one basis where the bank verifies at least daily that reserve account balances meet or exceed the number of the issuer's outstanding stablecoins.
"National banks and federal savings associations currently engage in stablecoin-related activities involving billions of dollars each day," Brian P. Brooks, acting comptroller of the currency, said in the release. "This opinion provides greater regulatory certainty for banks within the federal banking system to provide those client cybercurrency services in a safe and sound manner."
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