US Bank Agencies Clarify How Banks Should Treat Tokenized Assets

US bank watchdogs said that eligible securities using distributed ledger technology “should generally receive the same capital treatment as the non-tokenized form of the security,” under agencies’ rules.

Regulators also said in a Thursday memo that its capital rule is “technology neutral,” and the technologies used in the process to issue a security do not generally impact its capital treatment.

The memo is meant to answer outstanding questions, the Federal Reserve said in its release with the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency.

As with any exposure, banks holding tokenized securities ...