FDIC Prepares Framework Explaining How Banks Can Apply to Issue Stablecoins

The Federal Deposit Insurance Corporation (FDIC) is preparing to unveil a detailed plan outlining how U.S. banks may apply to issue stablecoins, a move that could significantly reshape the regulatory landscape for digital assets and traditional finance. The forthcoming guidance is expected to clarify approval pathways, supervisory expectations, and risk management standards for banks seeking to launch bank-issued, dollar-backed stablecoins.

According to people familiar with the matter, the FDIC’s plan aims to bring structure and transparency to an area that has remained largely undefined, despite rapid growth in stablecoin usage across payments, trading, and on-chain settlement. The initiative reflects regulators’ growing recognition that stablecoins are becoming an integral part of the financial system.

Why the FDIC is stepping in now

Stablecoins have expanded from niche crypto tools into widely used digital payment instruments, processing billions of dollars in transactions daily. While most stablecoins today are issued by non-bank entities, regulators have repeatedly emphasized that banks could play a critical role in issuing safer, more transparent stablecoins.

The FDIC’s upcoming framework is expected to outline how insured depository institutions can apply to issue stablecoins in a manner consistent with safety and soundness principles. Regulators are seeking to avoid the risks associated with poorly backed or lightly governed stablecoins, while still allowing innovation to proceed within the banking system.

“FDIC stablecoin guidance for banks,” “how banks can issue stablecoins,” and “U.S. bank-issued stablecoin regulation” have surged as the industry anticipates clearer rules.

What the application process may include

While final details have not yet been released, analysts expect the FDIC’s plan to focus on several core areas. These include reserve requirements, ensuring that stablecoins are fully backed by high-quality liquid assets such as cash or Treasury instruments. Governance and internal controls are also likely to be central, with banks required to demonstrate robust risk management and compliance frameworks.

In addition, banks may need to show how their stablecoin operations integrate with existing payment systems, anti-money laundering controls, and cybersecurity standards. The FDIC is expected to coordinate closely with other regulators, including the Federal Reserve and the Office of the Comptroller of the Currency, to ensure consistency across the banking sector.

Implications for banks and financial institutions

For U.S. banks, the FDIC’s guidance could open the door to new revenue streams and payment innovations. Bank-issued stablecoins could be used for real-time settlement, corporate treasury operations, and cross-border payments, offering faster and cheaper alternatives to legacy rails.

At the same time, compliance expectations are likely to be high. Smaller banks may face challenges meeting the technical and operational requirements needed to issue stablecoins safely. Larger institutions with existing digital infrastructure may be better positioned to move quickly once the application process is clarified.

Industry observers say the framework could encourage partnerships between banks and fintech firms, combining regulatory experience with technical expertise.

Impact on the broader stablecoin market

The FDIC’s move could have ripple effects across the stablecoin ecosystem. If banks are able to issue approved, fully regulated stablecoins, competition could intensify for existing non-bank issuers. Some analysts believe bank-issued stablecoins may be perceived as lower risk by institutions and regulators, potentially accelerating their adoption.

However, others argue that innovation from non-bank issuers will continue, particularly in decentralized finance and global markets. The FDIC’s framework is seen less as a replacement for existing stablecoins and more as a parallel, regulated track for dollar-backed digital assets.

Regulatory clarity and market confidence

One of the most significant outcomes of the FDIC’s plan may be increased confidence among market participants. Clear application rules reduce uncertainty and help banks make informed decisions about whether and how to enter the stablecoin space.

For regulators, the framework provides a mechanism to monitor risks proactively rather than reacting after problems emerge. This approach aligns with broader U.S. efforts to integrate digital assets into the financial system without compromising stability.

What comes next

The FDIC is expected to release its plan in the near term, followed by further interagency coordination and possible public feedback. Banks interested in issuing stablecoins are already preparing internal assessments to evaluate feasibility and compliance readiness.

As stablecoins continue to gain traction, the FDIC’s guidance could mark a turning point bringing bank-issued digital dollars closer to reality and setting the tone for how traditional finance and blockchain technology converge in the United States.