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IPFS News Link • Currencies

United States: Fintech: OCC Issues Significant Ruling Permitting National Banks To Use INVN...

•, Jones Day

The Result: The OCC Interpretive Letter relies upon longstanding regulatory and case law precedent holding that the business of banking should evolve and adapt to technological changes as they occur. The OCC concludes that validating, sorting, and recording payment transactions by serving as a node on an INVN, issuing stablecoin, and exchanging stablecoin for fiat currency such as U.S. dollars are permissible bank-payment activities when conducted consistent with applicable law and sound banking practices.

Looking Ahead: The OCC Interpretive Letter is a significant step allowing for stablecoin and public blockchain integration into the traditional banking sector. By permitting Banks to participate in and use INVNs and stablecoins to carry out the business of banking, the OCC Interpretive Letter advances the potential for transfers of funds between financial institutions without the need for a government intermediary, increasing the speed and efficiency of domestic and cross-border payments.