Delaware is positioning itself at the center of digital asset and stablecoin innovation with a coordinated package of legislation aimed at modernizing its banking code and creating a comprehensive framework for payment stablecoins. Senate Bill 16, the “Delaware Banking Modernization Act of 2026,” (SB 16) and Senate Bill 19, the “Delaware Payment Stablecoin Act,” (SB 19) were introduced on March 23, 2026, and are currently moving through the General Assembly. If enacted, both measures would take effect immediately, with implementation required by the earlier of one year after enactment or the issuance of final regulations by the State Bank Commissioner.

The Delaware Banking Modernization Act of 2026

The main objective of SB 16 is to update Title 5 of the Delaware code to reflect today’s technology-driven financial markets while maintaining Delaware’s appeal as a chartering jurisdiction. A central feature of SB 16 is the explicit treatment of digital assets. The bill adds definitions of “Digital Asset” and “Virtual Currency” to Title 5 and clarifies that “personal property” held in a fiduciary capacity by Delaware-chartered banks and savings banks includes digital assets. This change would give state-chartered institutions in Delaware clear statutory authority to hold and administer digital assets on behalf of customers, including in fiduciary roles such as trustee, executor, or custodian. The change would align Delaware law with prior guidance issued by the Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) in 2025 (specifically, OCC Interpretive Letter 1183 and FDIC FIL-7-2025).

The bill also would expand the State Bank Commissioner’s authority and introduces new flexibility in chartering and corporate governance. SB 16 authorizes the Commissioner to approve banks and trust companies with “all or less than all” of the powers conferred by Title 5, allowing for limited-purpose charters whose permissible activities are tailored in their articles and by order of the Commissioner. It seeks to modernize organizational provisions by permitting articles of association to fix the number of directors or specify a method for determining that number (subject to a minimum of five) and updates officer address requirements to reflect contemporary business practices.

From an interstate perspective, SB 16 facilitates mergers, consolidations, and conversions involving out-of-state banks and trust companies. It introduces new definitions for Delaware and out-of-state trust companies, broadens legislative intent to encourage redomiciliation to Delaware, and authorizes Delaware trust companies to establish offices in other states pursuant to approved interstate transactions. Finally, SB 16 expands the authority of out-of-state financial institutions to act as fiduciaries in Delaware on a reciprocal basis.

The Delaware Payment Stablecoin Act

Senate Bill 19, as substituted by SS 1, would establish the Delaware Payment Stablecoin Act under Title 5 and create a dedicated licensing and supervisory framework for payment stablecoin issuers and digital asset service providers that do business with or on behalf of Delaware residents. Drawing heavily on definitions and concepts from the federal GENIUS Act and proposed rules issued by the Office of the Comptroller of the Currency governing national banks, the bill is designed to align Delaware law with emerging federal standards and position the state as a preferred regulatory home for compliant stablecoin activity.

The Act would establish license categories for payment stablecoin issuers and digital asset service providers, and impose reserve requirements designed to support one-to-one redemption, including detailed “reserve shortfall remediation” cascades. It would mandate timely redemption of stablecoins at par, impose capital standards, and require compliance with anti-money laundering obligations and baseline data privacy protections. The bill also includes change-in-control notice procedures, custody safeguards for customer assets, and a pathway for federal charters to convert into a Delaware regime under specified conditions.

Notably, SB 19 contains strong preemption provisions intended to minimize conflicting state and local requirements for Delaware-licensed issuers, while also providing mechanisms to maintain parity with future federal rules issued by the federal banking agencies, including potential federal certification of Delaware’s framework under the GENIUS Act.

Our Take

Taken together, SB 16 and SB 19 signal Delaware’s intention to remain a leading jurisdiction for banking and trust company charters and to become a key regulatory hub for payment stablecoins and digital asset services. For traditional banks and trust companies, the bills would provide clearer authority to hold digital assets in fiduciary capacities, more flexible chartering and governance options, and streamlined paths for interstate expansion and redomiciliation. For out-of-state institutions and fintechs, the bills, if enacted, offer a potential on-ramp to Delaware as a primary regulatory home, including reciprocal fiduciary authority and a stablecoin regime aligned with federal policy.

This legislation is still pending and may be revised as they move through the legislative process. We will monitor these bills and report on any developments in due course.