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- FDIC is developing guidance for tokenized deposit insurance.
- A stablecoin application regime is expected before the end of 2025.
- Tokenized real-world assets have surpassed $24 billion this year.
The acting chair of the Federal Deposit Insurance Corporation (FDIC) is preparing the agency for a future where deposits may sit on blockchains instead of traditional bank ledgers. Acting Chair Travis Hill signaled that the FDIC is developing guidance for tokenized deposit insurance and aims to release an application framework for stablecoin issuers before the end of 2025.
A Push Toward Modernized Deposit Insurance
Speaking at the Federal Reserve Bank of Philadelphia’s Fintech Conference, Hill reiterated a simple stance: a deposit should remain a deposit, whether held in a traditional account or represented on a distributed ledger. His message underscores a growing belief among regulators that tokenization can coexist with existing protections—without altering the core legal rights of depositors.
The FDIC’s role would remain the same: step in when banks fail and protect insured customer funds. What changes is the underlying technology. Hill suggested that tokenized deposits could eventually operate under the same framework, giving banks and customers clarity as digital finance expands.
Growing Momentum Behind Tokenization
Interest in real-world asset (RWA) tokenization has climbed sharply this year. Excluding stablecoins, the market surpassed $24 billion in the first half of 2025, driven by tokenized private credit and U.S. Treasurys. Major players like BlackRock have accelerated the trend, with the asset manager’s BUIDL tokenized money market fund becoming one of the most notable launches in 2024.
Regulators and Wall Street now view tokenization as a scalable way to modernize settlement, improve liquidity, and open institutional-grade products to new digital rails.
Stablecoin Application Regime Expected by Year-End
Hill also confirmed that the FDIC is crafting a rulemaking proposal related to stablecoin issuance under the GENIUS Act. The agency is building standards around capital, reserves, and risk management for FDIC-regulated institutions that may issue stablecoins.
Also Read: Coinbase Sues FDIC Over Withheld Crypto Oversight Documents in FOIA Dispute
The stablecoin sector continues to grow rapidly, with global market capitalization hovering around $305 billion. Banks worldwide are exploring how to issue their own tokens or integrate stablecoins into their payment systems.
The FDIC’s upcoming guidance signals a shift toward a more regulated, institution-friendly digital asset ecosystem. If implemented smoothly, tokenized deposits and bank-issued stablecoins could bring blockchain technology deeper into mainstream finance—while keeping long-standing consumer protections intact.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
