The Federal Reserve Board published an independent research note outlining how tokenized deposits, tokenized money market funds and payment stablecoins could be classified and measured within U.S. monetary aggregates. The framework assigns assets to M1 when they primarily function as a medium of exchange and to non-M1 M2 when they primarily serve as a short-term store of value, while also assessing data availability, reporting infrastructure, double-counting risk and geographic scope. The note is not part of policy deliberations on changing the aggregates. Tokenized deposits are already captured in M1 or non-M1 M2 depending on the deposit terms, while tokenized retail money market funds are included in non-M1 M2. Both are commingled with their conventional equivalents in current reporting, although money market funds could warrant reclassification to M1 if payment uses become dominant. Payment stablecoins are not currently included and could fit within either M1 or non-M1 M2 depending on their prevailing use. Incorporating them would require standardized circulation data, adjustments for reserve assets already counted in the aggregates and a method for addressing their global circulation.
2026-09-04Federal Reserve Board
Federal Reserve Board research note outlines potential treatment of tokenized assets and stablecoins in US monetary aggregates
A Federal Reserve Board research note sets out a framework for classifying tokenized deposits, tokenized money market funds and payment stablecoins within U.S. monetary aggregates. Tokenized deposits and retail money market funds are already captured, while stablecoins could enter M1 or non-M1 M2 depending on their dominant use. Stablecoin inclusion would require standardized data and solutions for double counting and global circulation.