Key Takeaways
The Workplace of the Comptroller of the Foreign money (OCC) has printed a letter allowing banks to make use of stablecoins.
It additionally permits banks to function blockchain nodes that underlie stablecoins equivalent to USDC.
This implies stablecoins can now be used for settlement functions just like SWIFT and conventional networks.
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The Workplace of the Comptroller of the Foreign money (OCC) has printed a letter indicating that U.S. banks at the moment are allowed to make use of stablecoins and function blockchain node operators.
Banks Can Run Stablecoin Nodes
In line with the OCC’s announcement, “a nationwide financial institution or federal financial savings affiliation could validate, retailer, and file funds transactions” by serving as a blockchain node operator.
Although the OCC itself describes the permitted expertise as an “impartial node verification community,” the time period is roughly synonymous with publicly-run blockchains equivalent to Bitcoin and Ethereum. These blockchains are used to verify transactions involving sure stablecoins like Tether and USDC.
Brian P. Brooks, Appearing Comptroller of the Foreign money, says that the letter removes any “any authorized uncertainty in regards to the authority of banks to connect with blockchains.” It additionally makes clear that banks can function nodes and transact on these networks. In impact, stablecoins can be utilized very similar to SWIFT and different settlement networks.
Good Information for Crypto
Elsewhere, Jeremy Allaire, CEO of Circle, has endorsed the information. He said on Twitter that the information is a “large win for crypto and stablecoins,” together with Circle’s personal stablecoin, USDC.
The OCC beforehand allowed banks to carry stablecoin reserves in September. At this time’s announcement permits these establishments to take a extra lively function in supporting a blockchain community, and provides larger capacity to make use of stablecoins in monetary exercise.
Nevertheless, plainly U.S. banks have comparatively little capacity to work with price-volatile cryptocurrencies equivalent to Bitcoin itself.
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