Yesterday the U.S. Office of the Comptroller of the Currency (OCC) gave the green light to national banks and federal savings associations to hold stablecoin reserves. The wording of the interpretive letter seems to clear the path for the likes of the JPM Coin and others issued by banks. Initially, the main objectives of bank issued coins are to enable blockchain settlement of transactions.
From the OCC letter’s description, the sort of stablecoins it covers is pretty close to the e-money definition in Europe.
“For purposes of this letter, we consider a ‘stablecoin’ to be a unit of cryptocurrency associated with hosted wallets that is backed by a single fiat currency and redeemable by the holder of the stablecoin on a 1:1 basis for the underlying fiat currency upon submission of a redemption request to the issuer.”
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