The Federal Deposit Insurance Corporation is consideringguidance for tokenized deposit insurance. The agency also plans to introduce anapplication process for stablecoins by the end of this year.Digitalassets meet tradfi in London at the fmls25Stablecoins’ market capitalization reached $193 billion by 1December last year, with transaction volumes of $27.1 trillion by November,nearly triple the previous year. Analystsproject the sector could reach $3 trillion within five years. Excludingstablecoins, tokenized real-world assets rose over 60% to $13.5 billion, mainlyin private credit and U.S. Treasurys.Regulator Signals Rules for Tokenized DepositsActing FDIC Chair Travis Hill said at the Federal ReserveBank of Philadelphia’s Fintech Conference that guidance on tokenized depositinsurance will eventually be released. “My view for a long time has been that adeposit is a deposit. Moving a deposit from a traditional-finance world to ablockchain or distributed-ledger world shouldn’t change the legal nature ofit,” Hill said, according to Bloomberg.Regulator Sets Capital, Risk StandardsThe FDIC insures deposits at regulated banks. Hill said theagency is developing a framework for stablecoin issuance under the GENIUS Act.The regulator is working on standards for capital, reserves, and riskmanagement. As of Friday, the stablecoin market capitalization was about $305billion. In 2024, BlackRock launched a tokenized money market fund calledBUIDL.JUST IN: 🇺🇸 FDIC drafts guidance for tokenized deposit insurance to help banks expand into digital assets. pic.twitter.com/HOLc3IvckI— Crypto India (@CryptooIndia) November 14, 2025UK Consultation Targets Systemic Stablecoin RiskMeanwhile, across the Atlantic, the Bank of England hasopened a consultation on regulating sterling-denominated stablecoins. The frameworktargets tokens widely used for payments that could pose risks to financialstability. Proposed rules would require issuers to back part of theirliabilities with BoE deposits and the remainder with short-term UK governmentdebt. Limits on holdings would apply: £20,000 per coin for individuals and upto £10 million for businesses, with some exemptions. HM Treasury will designatesystemically important providers, subject to BoE supervision.This article was written by Tareq Sikder at www.financemagnates.com.