The US OCC allows banks, with certain restrictions, to hold assets in reserve for stablecoin issuers.
On September 21, 2020, the US Office of the Comptroller of the Currency (OCC) issued Interpretive Letter #1172 (the Letter), giving national banks and federal savings associations (FSAs) the greenlight to hold deposits that serve as reserves for the underlying assets backing certain “stablecoins” on behalf of customers. According to the Letter, national banks and FSAs are granted this expanded authority to hold stablecoin reserves if all of the following conditions are met:
- Deposits that constitute reserves for stablecoins are limited to stablecoin transactions involving hosted wallets.
- The stablecoins are backed by a single fiat currency.
- The stablecoins are redeemable by the holder on a one-to-one basis upon submission of a redemption request to the issuer.