WASHINGTON — U.S. regulators are laying the groundwork for broader use of stablecoins and tokenized deposits as part of a shift toward putting real-world assets and payments on blockchain networks, Bank of America said in a statement.
The bank said recent regulatory actions signal growing federal acceptance of digital assets, including the Office of the Comptroller of the Currency’s conditional approval last week of national trust bank charters for five digital asset companies. The move represents a key step toward integrating stablecoins and crypto custody into the regulated financial system, according to Bank of America.
National bank charters can provide advantages such as preemption of certain state banking laws, access to the Federal Reserve’s payments system and oversight by federal regulators, all of which can help firms scale operations nationwide.
A ‘Shift’
The approvals mark a shift from the OCC’s traditional trust bank model, which has historically focused on custodial and fiduciary services for conventional assets, the bank noted. The decision adds momentum to efforts by digital asset firms to operate within the financial mainstream without originating as traditional banks.
Bank of America also highlighted efforts by JPMorgan Chase and Singapore-based DBS to develop an interoperable framework for tokenized value transfers across public and permissioned blockchains. The initiative builds on JPMorgan’s JPMD tokenized deposit project and reflects an ongoing debate over whether tokenized deposits could serve as an alternative to stablecoins.
The bank said it envisions a future in which bonds, stocks, money market funds and cross-border payments increasingly move on-chain, supported by new regulations and institutional-grade infrastructure. To prepare, banks will need greater familiarity with blockchain technology and a willingness to experiment with tokenized assets and on-chain settlement.
Tokenized Money Market Fund
Separately, as the CU Daily reported earlier, JPMorgan is preparing to introduce its first tokenized money market fund, according to earlier reporting.
“There is a massive amount of interest from clients around tokenization,” John Donohue, head of global liquidity at J.P. Morgan Asset Management, said in comments reported by The Wall Street Journal. “And we expect to be a leader in this space.”
