In a significant step toward regulatory clarity in the evolving digital asset space, the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, and the Federal Deposit Insurance Corporation (FDIC) jointly released new guidance and feedback on key issues. The document addresses how tokenized securities – assets whose ownership is recorded using distributed ledger technology (DLT) – should be handled under existing bank capital rules.
The agencies emphasized that their capital framework remains strictly technology-neutral.
The method by which a security is issued or traded, whether through conventional channels or blockchain-based systems, does not alter its regulatory capital treatment.
As long as a tokenized security provides the exact same legal ownership rights as its traditional counterpart, it qualifies as an “eligible tokenized security” and must receive identical capital treatment under the agencies’ rules.
This principle extends equally to derivatives that reference such tokenized instruments.
The guidance defines tokenized securities broadly.
Tokenization can involve either representing an interest in a security originally issued through traditional processes (such as via a central securities depository) or issuing the security directly onto a distributed ledger.
Importantly, only those tokenized versions that confer identical legal rights fall within the scope of this clarification; any that fail to do so are excluded.
A dedicated section of the FAQs tackles the use of tokenized securities as financial collateral.
Regulators confirmed that the underlying technology has no bearing on whether an asset meets the capital rule’s definition of “financial collateral.”
Provided the tokenized security satisfies all standard requirements – including the banking organization holding a perfected, first-priority security interest – it qualifies fully.
It would then be eligible for the same credit-risk mitigation benefits and subject to identical haircuts as the non-tokenized version of the same security.
The agencies also explicitly rejected any distinction based on blockchain design.
Capital treatment remains unchanged regardless of whether the tokens reside on a permissioned (restricted-access) or permissionless (open-access) network.
This stance reinforces the regulators’ commitment to fostering innovation without creating artificial barriers tied to specific technological architectures.
Throughout the document, the agencies stress that banks must continue to apply rigorous risk-management practices and comply with all applicable laws when holding or transacting in tokenized securities.
References to existing regulations underscore that these assets remain subject to the same prudential safeguards as traditional holdings, including restrictions on permissible investments and lending limits.
By issuing this guidance, the three federal banking agencies aim to eliminate uncertainty for institutions exploring tokenized assets.
The move is expected to support responsible innovation in capital markets, where DLT promises faster settlement, greater transparency, and reduced intermediaries – all while preserving the safety and soundness of the banking system.
