U.S. banking regulators issued joint guidance on Thursday, clarifying that tokenized securities will have the same capital requirements as traditional securities, meaning banks will not have to hold additional capital for blockchain-based assets, Reuters reports.The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) stated in a joint statement that
their regulation is "technology neutral".
This means that the technological background of the issuance and distribution of securities does not in itself affect their capital requirement classification. The authorities justified the issuance of the guidelines by stating that banks are showing increasing interest in tokenized securities.Tokenized shares are blockchain-based assets that track the price of traditional stock exchanges.According to industry players, these tools could revolutionize stock trading.
This is because they allow for 24-hour, instant settlement, which increases liquidity and reduces transaction costs.
Thanks to Donald Trump's crypto-friendly policies, industry players began introducing tokenized shares in Europe last year, including companies like Robinhood, Kraken, and Gemini.
BlackRock and Franklin Templeton also offer tokenized bond-based products. The new regulatory guidance also paves the way for banks to manage these assets without requiring them to hold additional capital$BNB