- The Office of the Comptroller of the Currency (OCC) allows national banks to hold native blockchain tokens for operational use.
- Banks can hold tokens like Ether (ETH) or Solana (SOL) to pay network fees and test blockchain platforms.
- Holdings must be limited to operational needs and not used for speculation or investment.
- Banks must perform thorough risk and compliance assessments before holding these digital assets.
- This guidance removes a key bottleneck for banks to develop blockchain-based services.
On November 18, the Office of the Comptroller of the Currency (OCC) issued Interpretive Letter 1186, confirming that national banks may hold certain digital assets on their balance sheets for operational purposes. This guidance enables banks to keep native blockchain tokens such as Ether (ETH) or Solana (SOL) when necessary to pay network fees or to test blockchain-based systems, removing significant operational barriers for digital asset services, as stated in the OCC’s announcement at OCC news releases.
Before this decision, questions persisted about whether banks had the authority to hold the tokens required to operate on public blockchains despite prior guidance allowing digital asset custody, node operation, and stablecoin transactions. Now, banks can specifically hold these tokens for two main purposes.
First, banks may keep native blockchain tokens to cover “gas fees,” which are fees paid in the blockchain’s native currency to process transactions. This ability means a bank offering custody services on the Ethereum network can hold ETH to complete client transactions without requiring customers to manage separate ETH balances or rely on third parties.
Second, banks can hold these assets as principal for testing during the development or acquisition of blockchain platforms. This includes testing custody functions, transaction settlements, and compliance procedures without depending on external sources for test tokens, reducing operational and counterparty risk.
The OCC emphasized that holdings must serve legitimate operational needs and be limited in size relative to the bank’s capital. Banks are prohibited from using this authority for speculative purposes or maintaining investment positions. They must also perform comprehensive risk assessments covering technology, operations, Cybersecurity, liquidity, and illicit finance risks. Banks need to maintain proper governance and security controls for the digital assets they hold.
This guidance bridges a gap for financial institutions, enabling them to experiment and build blockchain-based infrastructure efficiently while managing risks and regulatory compliance.
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