Major Shift: U.S. Banks Can Now Hold Tokenized Securities

United States banking regulators have clarified that banks can hold certain tokenized securities while applying existing capital rules. The guidance was released by the Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation.

The clarification addresses how blockchain-based financial instruments fit within current regulatory frameworks. Officials said the approach ensures that emerging technologies do not disrupt established risk management standards in the banking system.

Banks Can Hold Tokenized Assets

Tokenized securities represent traditional assets whose ownership records are stored through distributed ledger technology, often associated with blockchain systems. These digital records can represent assets such as corporate shares or bonds and allow transactions to occur through digital platforms.

Regulators explained that banks may treat eligible tokenized securities the same way they treat conventional versions of those assets. This means the technology used to record ownership does not automatically change the capital reserves banks must maintain.

The agencies said this interpretation reflects a technology-neutral approach to banking regulation and capital supervision. Under this principle, the method used to issue or transfer a security does not alter its regulatory treatment.

Officials also noted that the interpretation applies only to tokenized securities that meet existing eligibility standards under current banking rules. Some digital assets may fall outside these categories and could face different regulatory assessments or capital treatment.

Even when tokenized securities meet these standards, banks must still perform detailed risk management procedures when holding them on their balance sheets. These processes include reviewing operational risks, cybersecurity exposure, and market conditions linked to digital infrastructure.

Digital Assets Gain Ground in Traditional Finance

The regulators also released detailed answers to common questions about tokenized securities and capital rules. The frequently asked questions guide provides examples and scenarios designed to help banks interpret the clarification.

Observers say the clarification may support wider experimentation with tokenized financial instruments within regulated banking environments. At the same time, regulators stressed that financial stability and careful oversight remain central priorities as digital systems enter traditional markets.

The broader integration of digital assets with the banking sector is also reflected in other developments across the financial system. In a related move, Kraken has become the first digital asset company to gain direct access to the U.S. Federal Reserve’s core payment systems.

Its Wyoming-based banking subsidiary, Kraken Financial, now holds a master account with the Fed. This account enables it to operate on the same level as traditional banks.

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