In an interpretive letter released to the public on September 21, 2020, the Office of the Comptroller of the Currency (“OCC”) concluded that a national bank may, as a service to banking clients, hold deposits that serve as reserves for certain “stablecoins.” A stablecoin is a type of cryptocurrency that is designed to have a stable value, facilitating its use in payments and in other contexts. While there are a number of ways to achieve this goal, the interpretive letter addresses only stablecoins that are “backed on a 1:1 basis by a single fiat currency where the bank verifies at least daily that reserve account balances are always equal to or greater than the number of the issuer’s outstanding stablecoins.” Further, the interpretive letter is limited to stablecoins that are transacted on “hosted wallets”—an account-based software program, controlled by an identifiable entity, that stores the cryptographic keys associated with such stablecoin—as opposed to those transacted on un-hosted wallets.