The acting head of the Federal Deposit Insurance Corporation (FDIC), the regulatory body that oversees banks in the United States, is reportedly considering guidelines on insuring token deposits and plans to launch an application process for stablecoins by the end of the year.
Acting FDIC Chairman Travis Hale, who did so to make Bullish statements about tokenization past the Federal Reserve Bank of Philadelphia’s fintech conference on Thursday said the regulator will eventually issue guidance on token deposit insurance, according to reports.
The Federal Deposit Insurance Corporation (FDIC) protects depositors in the event of a bank failure and secures funds in accounts at banks insured by the regulator.
“My view for a long time has been that a deposit is a deposit. Moving a deposit from the world of traditional finance to the world of blockchain or the world of distributed ledgers should not change the legal nature of it,” Hill said. I mentioned By Bloomberg.
Strong interest in symbols
Wall Street regulators have shown serious interest Real-world asset tokenization (RWA). sector this year.
Excluding stablecoins, the total value of tokenized real assets It exceeded $24 billion in the first half of the yearwith private credit and US Treasuries making up the bulk of the market, according to a report by RedStone.
BlackRock, the world’s largest asset manager, is one of the leading players in this space and has launched A premium money market fund called BUIDL In 2024.
Stablecoin application system by the end of the year
Meanwhile, Hill announced that the agency is also working on a system for issuing stablecoins and expects to release a proposal for an application process by the end of 2025 as part of its drafting duties. Rules under the GENIUS ActAccording to Law 360.
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He said it’s still too early to know how many institutions will be interested, but FDIC staff is working on standards related to capital requirements, reserve requirements and risk management for FDIC-regulated stablecoin issuers.
Stablecoins have also been an area of high growth Banks around the world are exploring this technology. The market cap of stablecoins is around $305 billion as of Friday. According to To the blockchain analytics platform DefiLlama.
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