US banking regulators have issued a significant clarification: tokenized securities will be treated identically to traditional assets under capital requirements. The Federal Reserve, FDIC, and OCC announced on Thursday that the underlying technology used to issue and trade securities does not alter their capital treatment.
This "technology neutral" stance means financial institutions will not need to over-collateralize when holding tokenized assets on their balance sheets. The guidance aims to accommodate the growing interest in asset tokenization from traditional finance firms.
Furthermore, derivatives referencing eligible tokenized securities will be subject to the same capital rules as those referencing their non-tokenized forms. Tokenized securities that meet the definition of financial collateral will also qualify, provided they are liquid and legally controlled by the institution, allowing them to serve as a credit risk mitigant.