FDIC Lays Out Guidelines for Institutions Issuing Stablecoins

The Federal Deposit Insurance Corp., which backs deposits at thousands of US banks, is laying out its guidelines for how those institutions and their fintech subsidiaries can use stablecoins as digital currencies become more widely accepted in the financial system.

New guidelines would seek to establish requirements related to reserve assets, redemptions of outstanding stablecoins, permissible activities and capital, among others, FDIC Chair Travis Hill said Tuesday in prepared remarks at the agency’s board meeting in Washington.

The move, which is subject to public comment, is part of rulemaking efforts by FDIC, Office of the Comptroller of the Currency ...