The FDIC is set to unveil a formal framework enabling insured banks to issue stablecoins, marking a pivotal step in bridging traditional finance with digital assets. The plan outlines eligibility criteria, reserve requirements, and oversight protocols for financial institutions seeking to tokenize deposits.
- FDIC to release stablecoin issuance framework on December 18, 2025
- Banks must maintain 100% reserves backed by insured deposits or liquid assets
- Minimum Tier 1 capital requirement of 10% for participating institutions
- Up to 25 banks expected to apply within first year
- Projected stablecoin issuance volume of $150 billion by 2027
- Only federally insured banks can participate, limiting systemic risk
The Federal Deposit Insurance Corp. (FDIC) will release a comprehensive regulatory framework on December 18, 2025, enabling federally insured banks to apply for authorization to issue dollar-pegged stablecoins. The proposal, developed in coordination with the Federal Reserve and the Office of the Comptroller of the Currency, establishes a clear pathway for banks to digitize deposits under existing safety and soundness standards. Under the new guidelines, participating banks must maintain reserves equal to 100% of the stablecoin supply in insured deposits or high-quality liquid assets. The FDIC will require quarterly audits and real-time transparency reporting to ensure peg stability and depositor protection. Institutions must also meet minimum capital ratios of 10% Tier 1 capital and pass stress tests aligned with the Dodd-Frank Act's living will requirements. The measure targets a growing demand for programmable money, with over 120 banks currently exploring stablecoin issuance. The FDIC anticipates up to 25 institutions to apply in the first 12 months, potentially issuing up to $150 billion in stablecoins by 2027. This initiative could expand access to digital payments, particularly for underserved communities and cross-border transactions. Market participants, including major banks like JPMorgan Chase and Bank of America, are preparing compliance teams to meet the new standards. The move may also influence the broader crypto market, with stablecoin market cap projected to exceed $1.5 trillion by 2026, according to industry forecasts. Regulators emphasize that only insured depository institutions will be eligible, limiting the risk of systemic exposure.