Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Welcome
Go
Free Newsletter Sign Up

Stablecoin-Linked Deposits Win Bank Regulator’s Blessing

Sept. 21, 2020, 9:15 PM

Banks can hold cash deposits as reserves to back cryptocurrencies pegged to the U.S. dollar or other currencies, a federal banking regulator said Monday.

The announcement on so-called stablecoins may help issuers, which include crypto startups and exchanges, market their digital assets as less subject to volatility than other cryptocurrencies because they’re backed by cash reserves held by banks.

The guidance only addresses stablecoins linked to a single fiat currency at a time, the Office of the Comptroller of the Currency said in a Monday interpretive letter. It follows the OCC’s July move to allow national banks to offer custody ...