Top Regulator Says US Banks Can Use Stablecoins for Payments

Top Regulator Says US Banks Can Use Stablecoins for Payments

A federal financial regulator is informing US banks that they can adopt new technologies such as stablecoins for their payment functions.

In a new letter offering guidance to financial institutions, Jonathan Gould of the Office of the Comptroller of the Currency (OCC) says banks can use stablecoins for payments while serving as a node on an independent node verification networks (INVN).

“INVNs and related stablecoins represent new technological means of carrying out bank-permissible payment activities. We therefore conclude that a bank may validate, store, and record payments transactions by serving as a node on an INVN. Likewise, a bank may use INVNs and related stablecoins to carry out other permissible payment activities.”

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The OCC says banks may buy and sell stablecoins as well as issue their own coins to facilitate payments. The largest dollar-pegged stablecoin currently is Tether (USDT) with a market capitalization of over $22 billion. USD Coin (USDC) follows with a market cap of over $4

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