Fed Says Tokenized Securities Get Same Capital Treatment (1)

US bank regulators said that eligible securities using distributed ledger technology should generally receive the same capital treatment as the non-tokenized form.

The Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency said in a memo that its capital rule is “technology neutral” and those used in the process to issue a security do not generally impact its capital treatment. It does not provide a different treatment based on the use of permissioned or permissionless blockchains.

The latest guidance from the agencies come as Trump-era regulators have moved to embrace the digital ...