Fed, OCC Clear Banks to Treat Capital for Tokenized Securities
U.S. regulators — including the Federal Reserve and the Office of the Comptroller of the Currency — have provided clarity on how banks must treat capital associated with tokenized securities, addressing questions around capital calculations and risk-weighting for tokenized claims. That clarification removes a major barrier that had slowed banks’ willingness to offer custody and settlement services for tokenized debt and equity as market activity accelerates.
The move matters because clearer capital treatment lowers operational and balance-sheet uncertainty, which can unlock bank-led custody, securities lending, repo and underwriting for tokenized issuance. Adoption is likely to proceed within existing prudential, AML/KYC and reporting frameworks, so integration with traditional finance will expand while remaining subject to established safety and compliance standards. For institutional investors and crypto platforms, the guidance could speed liquidity and mainstream use of tokenized securities.