Federal banks in the US see new capacity to provide services to crypto firms, specifically stablecoin operators.
Per an interpretive letter from the US Office of the Comptroller of the Currency released on Monday, national banks will be free to hold reserve currencies for stablecoins.
The new guidance reads, "We conclude that a national bank may hold such stablecoin 'reserves' as a service to bank customers."
Alongside the announcement, Acting Comptroller of the Currency Brian Brooks noted that stablecoin services are already a part of many banks' activities: “National banks and federal savings associations currently engage in stablecoin related activities involving billions of dollars each day.”
The letter does, however, specify that for now, this will only apply to stablecoins backed 1:1 with another currency, meaning that tokens dependent on "baskets" of currencies like Saga or some versions of Libra are excluded.
Tether (USDT) is a famous example of a stablecoin pegged to the US dollar, using reserves held in New York.