US banks allowed to hold collateral for stablecoins

The Office of the Comptroller of the Currency (OCC) has authorized national banks to hold the reserve assets that secure the stablecoins.

The OCC emphasizes that the permission only applies to certain types of stablecoins: they must be pegged to another currency at a 1:1 ratio.

The Libra stablecoin, which is supposed to be pegged to a basket of several national currencies, would not be able to be serviced in national banks in this form.

OCC also recalled that regardless of the type of customer, banks must adhere to anti-money laundering, customer identification and federal securities laws: “A bank must consider all associated risk factors, including liquidity and legal risk, before entering into any agreement with a stablecoin issuer”.

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