FDIC Moves Toward Tokenized Deposit Insurance
Federal Deposit Insurance Corporation (FDIC) Acting Chair Travis Hill has indicated that the agency is preparing new guidance focused on tokenized deposit insurance, reflecting the growing interest in blockchain-based financial products. Speaking at the Federal Reserve Bank of Philadelphia’s Fintech Conference, Hill emphasized that while innovation continues, the legal definition of a deposit must remain unchanged as it transitions from traditional banking systems to blockchain networks.
Interest in real-world asset (RWA) tokenization has surged, with the total value surpassing $24 billion in the first half of the year. Major financial institutions are entering the space as well—most notably BlackRock, which recently launched its tokenized money market fund, BUIDL.
FDIC Prepares Stablecoin Application Process
Hill also revealed that the FDIC is building a comprehensive framework for stablecoin issuance. The agency aims to introduce a formal stablecoin application process by the end of 2025, providing clearer regulatory pathways for banks and financial institutions looking to issue or work with stablecoins.
The stablecoin market, now valued at approximately $305 billion, continues to expand as global banks explore blockchain-based settlement and digital asset products. With regulatory clarity on the horizon, this momentum is expected to accelerate as traditional finance further integrates tokenization technologies.
