The federal bank regulatory agencies have released new guidance addressing the capital treatment of tokenized securities. Tokenized securities are defined as those in which ownership rights are represented using distributed ledger technology.
According to the agencies, eligible tokenized securities will generally be subject to the same capital requirements as their non-tokenized counterparts under existing capital rules. The agencies emphasized that “the capital rule is technology neutral, and the technologies used to issue and transact in a security do not generally impact its capital treatment.”
Banks that hold tokenized securities are required to maintain sound risk management practices and comply with all relevant laws and regulations.
