US regulators set tokenized capital treatment Change The Federal Reserve, FDIC, and OCC issued joint guidance that eligible tokenized securities receive the same bank capital treatment as their non-tokenized equivalents under technology-neutral capital rules. Why it matters Capital requirements do not change based on how a security is issued or transferred, including via blockchain. An “eligible tokenized security” is defined as a tokenized asset with the same legal rights as the non-tokenized version, including the same claim on cash flows or ownership. For eligible instruments, banks apply the same risk weights and capital rules used for the traditional form. Tokenized bonds or stocks that meet the definition of financial collateral can be recognized as collateral under existing rules using the same haircuts and conditions. Risk management expectations include controls for cyber-risk, smart-contract bugs, settlement risk, and compliance with other laws beyond capital rules. Bankless Times · Mar 7 More actions Like (sign in) Save (sign in) Share Facebook LinkedIn X / Twitter Copy link
