U.S. banking regulators clarified that banks should not have to hold additional capital against losses when dealing with blockchain-based securities, stating that their rules are technology neutral. The agencies said they issued the guidance due to growing interest from banks in representing ownership rights in tokenized securities. The technologies used to issue and transact in a security do not generally affect its capital treatment.
The industry says tokenized shares—blockchain-based instruments that track traditional equities—could revolutionize stock markets by enabling shares to be traded 24/7 and settled instantly, boosting liquidity and reducing transaction costs. A few companies have issued their own experimental stock tokens on the blockchain, but most tokenized shares are pegged to public companies and issued by third parties.
Other companies, including BlackRock and Franklin Templeton, offer tokenized treasury products. The guidance underscores a technology-neutral regulatory approach as markets continue exploring tokenization and its potential to reshape liquidity, settlement speed, and access to capital.
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