Federal Reserve shuts down Farmington Bank over unapproved stablecoin project

The Federal Reserve took action against Farmington State Bank on Aug. 17, asserting the bank took on a stablecoin strategy without notifying supervisors or gaining approval.

The U.S. government agency said that it approved Farmington’s application to become a bank holding company in 2020, at which time it imposed certain conditions on the bank and its main shareholder, Jean Chalopin. Those conditions prevented the bank from changing its business plan and taking certain actions without approval.