U.S. National Banks can now hold deposits as reserves for certain stablecoins
The Office of the Comptroller of the Currency (OCC) has recently published a letter allowing national banks to engage in stablecoin activities.
The official report from the OCC was created in response to constant questions about banking activities and the increased popularity of stablecoins. This letter clearly defines the authority for National Banks and Federal Savings Associations to hold “reserves” on behalf of customers who issue certain stablecoins.
Stablecoin issuers can thus deposit their assets in the assigned reserve account with the National Bank, which provides a guarantee that the issuer has sufficient assets to cover the digital currency.
Acting Comptroller of the Currency, Brian P. Brooks said:
National banks and federal savings associations currently engage in stablecoin-related activities involving billions of dollars each day,
This opinion provides greater regulatory certainty for banks within the federal banking system to provide those client services in a safe and sound manner.
If you are an issuer and you are interested the OCC emphasizes that this only applies to stablecoin covered on a 1: 1 ratio, where the bank verifies every day whether the balances meet or exceed the number of the issuer’s outstanding stablecoins.
However, what can actually speed up the adoption of stablecoins is set out in point 18, according to which reserve accounts with stablecoins can be provided not only to issuers but also to individual stablecoin holders if they meet insurance requirements.
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