US Regulator Signals Guidance on Stablecoins, Tokenized Deposit Insurance

The Federal Deposit Insurance Corporation is considering
guidance for tokenized deposit insurance. The agency also plans to introduce an
application process for stablecoins by the end of this year.

Digital
assets meet tradfi in London at the fmls25

Stablecoins’ market capitalization reached $193 billion by 1
December last year, with transaction volumes of $27.1 trillion by November,
nearly triple the previous year.

Analysts
project the sector could reach $3 trillion within five years. Excluding
stablecoins, tokenized real-world assets rose over 60% to $13.5 billion, mainly
in private credit and U.S. Treasurys.

Regulator Signals Rules for Tokenized Deposits

Acting FDIC Chair Travis Hill said at the Federal Reserve
Bank of Philadelphia’s Fintech Conference that guidance on tokenized deposit
insurance will eventually be released.

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

Regulator Sets Capital, Risk Standards

The FDIC insures deposits at regulated banks. Hill said the
agency is developing a framework for stablecoin issuance under the GENIUS Act.
The regulator is working on standards for capital, reserves, and risk
management. As of Friday, the stablecoin market capitalization was about $305
billion. In 2024, BlackRock launched a tokenized money market fund called
BUIDL.

JUST IN: 🇺🇸 FDIC drafts guidance for tokenized deposit insurance to help banks expand into digital assets. pic.twitter.com/HOLc3IvckI

— Crypto India (@CryptooIndia) November 14, 2025

UK Consultation Targets Systemic Stablecoin Risk

Meanwhile, across the Atlantic, the Bank of England has
opened a consultation on regulating sterling-denominated stablecoins. The framework
targets tokens widely used for payments that could pose risks to financial
stability.

Proposed rules would require issuers to back part of their
liabilities with BoE deposits and the remainder with short-term UK government
debt. Limits on holdings would apply: £20,000 per coin for individuals and up
to £10 million for businesses, with some exemptions. HM Treasury will designate
systemically important providers, subject to BoE supervision.

This article was written by Tareq Sikder at www.financemagnates.com.
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