FDIC to Provide Guidance on Tokenized Deposits and Stablecoin Applications

The acting chair of the Federal Deposit Insurance Corporation (FDIC) is set to issue new guidance regarding tokenized deposits and anticipates launching an application process for stablecoin issuers by the end of 2025.

Key Takeaways:

The FDIC plans to release guidance on tokenized deposits and establish a stablecoin application process by late 2025.
Acting Chair Travis Hill emphasizes that blockchain-based deposits should maintain the same legal protections as traditional deposits.
Interest in tokenized real-world assets (RWAs) has surged, with their value exceeding $24 billion.

During his address at the Federal Reserve Bank of Philadelphia’s Fintech Conference, Acting FDIC Chair Travis Hill announced that the agency aims to clarify the application of deposit insurance to assets issued or represented on a blockchain.

Tokenized Deposits Should Retain Legal Protections

Hill has consistently supported the concept of tokenization, asserting that the legal protections surrounding deposits should remain unchanged, regardless of their format.

“My perspective has been that a deposit is a deposit,” Hill stated, as reported by Bloomberg. “Transitioning a deposit from the traditional finance sector to a blockchain or distributed ledger should not alter its legal nature.”

This year, there has been a marked increase in interest surrounding the tokenization of real-world assets, drawing attention from Wall Street and global regulators alike.

Excluding stablecoins, the total value of tokenized real-world assets reached over $24 billion in the first half of 2025, largely driven by growth in tokenized private credit and U.S. Treasuries, according to RedStone.

BlackRock has emerged as a frontrunner in this domain, introducing its tokenized money market fund BUIDL in 2024, which rapidly gained traction in the RWA sector.

Hill also mentioned that the FDIC is developing a regulatory framework for stablecoin issuance, with a formal proposal for an application process expected by the end of 2025. This initiative aligns with the agency's obligations under the GENIUS Act, which mandates U.S. regulators to establish consistent rules for stablecoin oversight.

While the number of institutions seeking FDIC approval remains uncertain, Hill indicated that the agency's staff are working on standards regarding capital requirements, reserve backing, and risk management for banks looking to issue FDIC-regulated stablecoins.

Stablecoins have become one of the fastest-growing segments of the digital assets market, boasting a cumulative market capitalization of $305 billion as of Friday, according to DefiLlama.

Unlocking the $400 Trillion Traditional Finance Market with Tokenized RWAs

Recent research by Web3 digital property firm Animoca Brands suggests that the tokenization of real-world assets could unlock a massive $400 trillion market in traditional finance.

Animoca's researchers, Andrew Ho and Ming Ruan, have indicated that the global markets for private credit, treasury debt, commodities, stocks, alternative funds, and bonds present a significant opportunity for growth.

“The estimated $400 trillion addressable TradFi market highlights the potential for expansion through RWA tokenization,” they noted.

Furthermore, according to the 2025 Skynet RWA Security Report, the market for tokenized RWAs could expand to $16 trillion by 2030.

Tokenized U.S. Treasuries alone are expected to reach $4.2 billion this year, with short-term government bonds being the primary driver of this activity.

Institutional interest in tokenization is growing, as major banks, asset managers, and blockchain-focused firms delve into tokenization strategies for yield enhancement and liquidity management.