US regulator: Federally chartered banks can facilitate stablecoin payments, issue their own
National banks and federal savings associations can use public blockchains and stablecoins for settlement, The Office of the Comptroller of the Currency (OCC) said in an interpretive letter published late Monday. The letter indicates that banks and savings associations can now run crypto nodes and utilize associated stablecoins for “permissible payment activities.” This means banks can use public blockchains to validate, store, record and settle payment transactions as long as theyre compliant with existing laws. It also specifically mentions the use of stablecoins for transactions, saying blockchain networks can mitigate costs for cross-border transactions as a “cheaper, faster, and more efficient” means of payment. For that reason, its empowering banks to utilize blockchains and their stablecoins for converting to and from fiat during remittances — and even issue stablecoins if they so choose. The regulator noted: “Likewise, a bank may use stablecoins to facilitate payment transactions for customers on an independent node verification network, including by issuing a stablecoin, and by exchanging that stablecoin for fiat currency.” As the letter notes elsewhere: “Just as banks may buy and sell ESV as a means of converting the ESV into dollars (and vice versa) to complete customer payment transactions, banks may buy, sell, and issue stablecoin to facilitate