U.S. federal banking regulators clarify capital treatment rules for tokenized securities

The U.S. federal banking regulators jointly issued a FAQ clarifying the capital treatment rules for tokenized securities. Tokenized securities refer to securities whose ownership is represented using distributed ledger technology. The FAQ states that eligible tokenized securities generally receive the same capital treatment under capital rules as their non-tokenized counterparts. Regulators emphasize that capital rules remain technologically neutral, and the technology used for issuing and trading securities usually does not affect capital treatment. Banks holding tokenized securities must follow risk management practices and comply with relevant laws and regulations.