FDIC Launches Plan on Bank Applications to Issue Stablecoins

The Federal Deposit Insurance Corp. moved to propose a framework that outlines how banks would be able to apply to issue payment stablecoins via a subsidiary, a key first step from the agency towards implementing landmark legislation.

The plan, which is subject to public consultation before it can be finalized, spells out how certain lenders can apply in order to get the regulator’s nod. Acting Chair Travis Hill said in a Tuesday statement that the “tailored” process would allow the FDIC to evaluate the safety and soundness of an applicant’s proposed activities.