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The Fed, OCC, FDIC Clarify Capital Treatment of Tokenized Securities

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The Fed, OCC, FDIC Clarify Capital Treatment of Tokenized Securities

The U.S. federal banking agencies have issued new guidance clarifying that tokenized securities should receive the same capital treatment as traditional securities.

The federal banking agencies of the United States have issued clarifications on the capital treatment of tokenization securities. The guidance states that eligible tokenized securities should receive the same capital treatment as traditional securities under existing capital rules.

On Thursday, March 5, the U.S. Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC) published joint guidance on securities tokenization.

The guidance is in the form of answers to frequently asked questions about the tokenization of real-world assets (RWAs) that are classified as securities in The U.S. — such as stocks, U.S. treasuries, or exchange-traded funds (ETFs).

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The OCC’s guidance aims to provide clarity treatment for banks engaging in tokenization services, potentially encouraging wider adoption of tokenized assets.

“The capital rule is technology neutral. An eligible tokenized security should generally receive the same capital treatment as the non-tokenized form of security under the capital rule,” the OCC summarized in an X post yesterday evening.

One of the FAQs focused on whether the tokenized assets in question were issued on a public, permissionless blockchain network, or on a private, permissioned one. The banking agencies clarified that the distinction didn’t affect capital treatment, stating in its guidance:

“No, the capital rule does not provide a different treatment based on the use of
permissioned or permissionless blockchains.”

The integration of tokenized assets into existing financial frameworks represents a broader trend of financial innovation where blockchain and digital assets are increasingly seen as integral to the future of traditional finance. This regulatory clarity could serve as a catalyst for financial institutions to explore and expand tokenization services, thereby fostering innovation in capital markets.

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The OCC, which regulates and supervises national banks and federal savings associations, has received a flood of applications in the past year from crypto-linked firms looking to obtain banking licenses, with zerohash and Revolut among the most recent examples.

As The Defiant reported earlier this week, a new report from three major, global financial infrastructure providers argued that interoperability is essential for digital asset securities to reach their full potential.

This article was generated with the assistance of AI workflows.

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Crypto World

Coinbase Prime Integrates Regulated Futures and Cross-Margin Trading for Institutional Crypto

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR:

  • Coinbase Prime now offers 20+ CFTC-regulated futures contracts with 24/7 trading through Coinbase Financial Markets.
  • Unified cross-margin allows institutions to manage spot and futures exposures within one single capital framework.
  • Assets are secured under Coinbase’s NYDFS-regulated custodian, keeping all trading within a fully regulated structure.
  • Coinbase’s Deribit acquisition moves the platform closer to one unified exchange for spot, futures, and options.

Coinbase Prime has taken a major step forward in institutional crypto infrastructure. The platform announced integrated regulated futures trading and unified cross-margin functionality across spot and derivatives markets.

Through Coinbase Financial Markets, its CFTC-regulated futures commission merchant, institutions now access over 20 futures contracts.

These include perpetual-style products with round-the-clock trading availability. The launch positions Coinbase Prime as a full-service, regulated prime brokerage built specifically for institutional-grade digital asset operations.

Unified Cross-Margin Reshapes Capital Management for Trading Desks

Traditionally, spot and futures trading required separate collateral pools and independent risk systems. That separation often created inefficiencies for institutional trading desks managing complex multi-market strategies. Coinbase Prime now brings both under one capital framework through unified cross-margin.

With this setup, institutions can evaluate spot and futures exposures together within a single portfolio view. Capital moves more freely across strategies, while risk is monitored holistically across the entire platform.

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This is particularly useful for basis trading, where hedged positions can benefit from more efficient margin treatment.

Coinbase Institutional shared the development on X, stating that Prime is now “the most comprehensive operating system for institutional crypto.”

The post noted that institutions can now “trade, finance, and manage assets within a regulated full-service crypto prime brokerage framework.”

Prime’s deterministic risk model also allows trading desks to calculate margin requirements before execution. That transparency reduces reliance on opaque margin engines that have historically complicated pre-trade planning for institutions.

Regulated Infrastructure Brings Futures Directly Into the Prime Workflow

Futures access through Coinbase Financial Markets, a CFTC-regulated FCM, is now embedded directly into the Prime workflow.

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Institutions no longer need separate platforms to access derivatives markets. Execution, custody, and risk management now operate within a single environment.

Assets remain secured within Coinbase’s NYDFS-regulated qualified custodian throughout the trading lifecycle. This structure allows institutions to operate within a fully regulated framework while accessing both spot and derivatives markets simultaneously.

Beyond futures, Coinbase Prime also covers financing, lending, and operational infrastructure at institutional scale.

The platform is designed so trading desks no longer need to coordinate across fragmented or self-assembled systems.

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Coinbase’s recent acquisition of Deribit, the world’s leading crypto options exchange, further broadens this ecosystem.

The goal is a single platform where institutions can access spot, futures, perpetuals, and options together. That consolidated model reflects Coinbase Institutional’s broader objective of building what it describes as an “Everything Exchange” for professional market participants.

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Curve Finance Warns PancakeSwap About Licensing Violation

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Decentralized Exchange, DeFi, PancakeSwap, Curve Finance

The team behind the Curve Finance decentralized finance (DeFi) platform accused the PancakeSwap decentralized exchange (DEX) of using its code without the proper licensing.

The code is tied to the “StableSwap” feature used for swapping stablecoins and “tightly-pegged” assets on PancakeSwap Infinity, the latest version of the PancakeSwap DEX.

“If you want to enjoy using stableswap without legal problems and to borrow some of our expertise to keep users SAFU, you still can contact us for licensing and collaboration,” the Curve team said on X.

Decentralized Exchange, DeFi, PancakeSwap, Curve Finance
Source: Curve Finance

In a separate post, Curve said “deep stableswap expertise” is needed to safely integrate swap features, and cited the 2022 hack of the Saddle Finance DEX and the $116 million hack of DeFi protocol Balancer in 2025 as examples of swap-based code exploits.

The PancakeSwap team said it would reach out to Curve Finance to discuss the issue. “Indeed, better to be friends and build together,” the Curve team responded.

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Cointelegraph reached out to both teams but did not receive a response by the time of publication.

The incident highlights the potential cybersecurity and legal issues that arise in decentralized finance as projects and protocols continue to iterate on products and expand features.

Related: Curve founder says DeFi must ditch token emissions for real revenue

PancakeSwap Infinity launches and goes cross-chain

PancakeSwap Infinity launched on the Arbitrum network and BNB Chain in April 2025, following the integration of one-click, cross-chain swaps that allow users to move digital assets between blockchain protocols.

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The updated DEX introduced “hooks,” smart contract plug-ins that customize parameters for liquidity pools, including dynamic fee structuring, tailored rebates and onchain limit orders that execute when preset conditions are met.

Decentralized Exchange, DeFi, PancakeSwap, Curve Finance
Different types of liquidity pools on PancakeSwap Infinity. Source: PancakeSwap

The upgrade also lowered pool creation fees by up to 99% and was built to accommodate different liquidity strategies, according to PancakeSwap.

In July 2025, PancakeSwap Infinity launched on Base, an Ethereum layer-2 (L2) scaling network, and touted up to 50% cheaper trading fees when Ether (ETH), the native token of the Ethereum layer-1 blockchain network, was traded against ERC-20 tokens.

ERC-20 is the token standard for most assets minted on Ethereum, including the gas and governance tokens of Ethereum L2s, memecoins, and other projects issuing tokens on Ethereum.

Magazine: MakerDAO’s plan to bring back ‘DeFi summer’ — Rune Christensen

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