Per a U.S. interpretive letter National banks will be free to hold reserve currencies for stable coins, the Office of the Comptroller of the Currency released on Monday.
“We conclude that a national bank can hold such ‘reserves’ of stablecoin. As service to bank customers,” the new guidance reads.
In addition to the announcement, Acting Currency Comptroller Brian Brooks noted. That stablecoin services are already part of the activities of many banks. “National banks and federal savings associations currently engaged in activities related to stablecoin involving billions of dollars every day.”
However, the letter specifies that for now, this will only apply to stablecoins backed 1:1 with another currency, meaning that tokens are excluded depending on currency “baskets” such as Saga or some versions of Libra.
Tether (USDT) is a famous example of reserves held in New York using a stable coin pegged to the U.S. dollar. There has been, however, lingering controversy over the alleged use of those reserves by Tether. To cover losses at the Bitfinex sister exchange.
The office has been extremely active in expanding the role. That cryptography can play in U.S. banks since Brian Brooks. The former head of the legal department of Coinbase took over as acting head of the OCC in March. In July. The OCC issued a similar decision confirming that crypto-assets can be held by federal banks.