The FDIC has issued guidance that clearly distinguishes between tokenized deposits and stablecoins, defining the former as an insured bank liability and generally leaving the latter outside federal coverage. The measure affects banks, on‑chain infrastructure providers, product teams and compliance departments that design accounts and tokenization programs.
The guidance reiterates that a deposit remains a deposit even if its representation is a token on a blockchain: when the asset is a direct obligation of an insured institution, it retains federal coverage of $250,000 per depositor, per bank and per ownership category, according to the FDIC. In contrast, stablecoins are generally not classified as deposits and therefore lack that insurance; their supervision focuses on reserve composition and the associated systemic risk.
The guidance formalizes the rescission of the previous FIL‑16‑2022 and the abandonment of the “pause letters”, signaling a shift from reactive prudence toward a framework that allows supervised experimentation. FIL‑7‑2025 authorizes supervised institutions to conduct permitted crypto activities without requesting prior approval, but conditions that freedom on robust operational control and compliance frameworks.
The clarification —formalized in FIL‑7‑2025 on March 28, 2025— eases exploration of crypto activities without prior applications while adding new requirements on risk management and transaction recordkeeping.
Context and impact of tokenized deposit insurance
It enables banks to offer on‑chain payments and settlement, accelerating the development of custody and cross‑border settlement solutions. While the inclusion of tokenized deposits on the bank balance sheet preserves liquidity tied to traditional deposits, while stablecoins remain exposed to reserve risks.
In the words of Acting Chair Travis Hill: “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.”
The guidance marks a regulatory tipping point that opens space for on‑chain banking initiatives, but emphasizes controls and recordkeeping; the next operational milestone will be the FDIC’s publication of more granular details on smart contract auditing and risk management requirements for tokenized assets.
