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New BIS proposal on 'Prudential treatment of cryptoassets exposure' divides coins into two groups:

Group 1: tokenized assets, assets w/ stabilisation mechanisms, fall under existing Basel Framework w/ some tweaks

Group 2: all others (e.g Bitcoin) get risk weight of 1250%

"The application of the 1250% risk weight... will ensure that banks are required to hold risk-based capital at least equal in value to their exposures. In other words, the capital will be sufficient to absorb a full write-off..."

PDF here: bis.org/bcbs/publ/d519.pdf

@arbedout yes, matt levine's piece today explained this clearly for the great unwashed like me - the 1250% is what i would have thought of as "100% collateralized" although not exactly "fully backed".

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