FDIC Considering Tokenized Deposit Insurance, Stablecoin Applications

The acting chairman of the Federal Deposit Insurance Corporation (FDIC), the regulatory body that oversees banks in the United States, will consider a guide for tokenized deposit insurance and plans to launch an application process for stablecoins by the end of the year.

Travis Hill, chairman of the FDIC, who has done bullish statements about tokenization in the past, said Thursday at the Federal Reserve Bank of Philadelphia’s Fintech Conference that the regulator will eventually release guidance around tokenized deposit insurance, according to reports.

The FDIC protects depositors in the event of bank failure and insures money in bank accounts that are insured by the regulator.

“My view for a long time has been that a deposit is a deposit. Moving a deposit from a traditional world of finance to a blockchain or distributed-ledger world should not change the legal nature of it,” said Hill, as reported from Bloomberg.

Strong interest in tokenization

Regulators and Wall Street have shown serious interest in the tokenization of real world assets (RWA). sector this year.

Excluding stablecoins, the total value of real world assets tokenized exceeded $ 24 billion in the first half of the yearwith private credit and US Treasuries making up the majority of the market, according to a RedStone report.