The Federal Deposit Insurance Corporation is considering guidance for tokenized deposit insurance. The agency also plans to introduce an application process for stablecoins by the end of this year.

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Stablecoins’ market capitalization reached $193 billion by 1 December last year, with transaction volumes of $27.1 trillion by November, nearly triple the previous year.

Analysts project the sector could reach $3 trillion within five years. Excluding stablecoins, tokenized real-world assets rose over 60% to $13.5 billion, mainly in private credit and U.S. Treasurys.

Regulator Signals Rules for Tokenized Deposits

Acting FDIC Chair Travis Hill said at the Federal Reserve Bank of Philadelphia’s Fintech Conference that guidance on tokenized deposit insurance will eventually be released.

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“My view for a long time has been that a deposit is a deposit. Moving a deposit from a traditional-finance world to a blockchain or distributed-ledger world shouldn’t change the legal nature of it,” Hill said, according to Bloomberg.

Regulator Sets Capital, Risk Standards

The FDIC insures deposits at regulated banks. Hill said the agency is developing a framework for stablecoin issuance under the GENIUS Act. The regulator is working on standards for capital, reserves, and risk management. As of Friday, the stablecoin market capitalization was about $305 billion. In 2024, BlackRock launched a tokenized money market fund called BUIDL.

UK Consultation Targets Systemic Stablecoin Risk

Meanwhile, across the Atlantic, the Bank of England has opened a consultation on regulating sterling-denominated stablecoins. The framework targets tokens widely used for payments that could pose risks to financial stability.

Proposed rules would require issuers to back part of their liabilities with BoE deposits and the remainder with short-term UK government debt. Limits on holdings would apply: £20,000 per coin for individuals and up to £10 million for businesses, with some exemptions. HM Treasury will designate systemically important providers, subject to BoE supervision.