The Federal Reserve and other U.S. bank authorities have made it clear how banks should include tokenized assets in their capital calculations. They declared in simple English that a tokenized asset gets the same capital treatment as a traditional security if it is legally the same.
Tokenized Securities Get Same Capital Treatment
In a new joint notice, the Federal Reserve, FDIC, and OCC said their capital rules are “technology neutral.” That means the way a security is issued or moved, including on a blockchain, does not change how much capital a bank must hold against it.
They introduced the term “eligible tokenized security” for a tokenized asset that carries the same legal rights as its non‑tokenized version, such as the same claim on cash flows or ownership. For these eligible instruments, banks must apply the exact same risk weights and capital rules they would use for the traditional form.
The guidance also stresses that tokenization by itself does not turn something that is not a security into a security, or vice versa. Banks still have to look at the legal nature of the underlying instrument, not the technology used.
How Banks Should Handle Collateral and Risk
Regulators went further, explaining how tokenized securities function as collateral. If a tokenized bond or stock meets the definition of “financial collateral” under existing rules, a bank can recognize it as collateral in the same way as the paper or depository version. The same haircuts and conditions apply.
The FAQs also state that the rules do not change based on whether tokens are on a permissioned or permissionless blockchain. A bank must instead focus on legal enforceability, including whether it can get a perfected, first‑priority security interest in the tokenized asset.
At the same time, supervisors remind banks that tokenized assets still require strong risk management. That includes controls around cyber‑risk, smart‑contract bugs, settlement risk, and compliance with all other laws, not just capital rules.
This clarification removes one key question for banks experimenting with tokenization projects. If they issue or hold tokenized Treasuries, corporate bonds, or other standard securities with identical rights, they do not face surprise capital charges just because those assets live on a blockchain.
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